CMKM Diamonds Inc. case versus the SEC..outrageous fraud alleged
http://www.worldreports.org/news/257_operation_stillpoint_to_destroy_america_stopped
PENDING SMKM/CMKX CASE AGAINST THE S.E.C. WILL BE THE BIGGEST FRAUDULENT FINANCE LAWSUIT IN HISTORY: MASSIVE SCAMMING PLATFORM RUN BY BUSH JR.’S S.E.C.
Lawyers acting for CMKM (CMKX) investors have prepared an immense class action lawsuit against the Securities and Exchange Commission and its Commissioners individually and severally claiming compensation in respect of 3.5 billion legitimate shares, seeking release of all the funds that have been collected (DTCC) for the sole benefit of CMKM/CMKX shareholders… for damages in excess of $3.87 trillion, based on allegations that the S.E.C. invented 2.25 trillion of PHANTOM SHARES in CMKM/CMKX stock, which were exploited and traded illegally given that the phantom shares were of course fraudulent and that stock did not, therefore, exist legally – scooping vast illicit scamming profits which were stashed off-balance sheet – in a colossal Ponzi operation perpetrated by the S.E.C. itself in collaboration with George H. W. Bush. George W. Bush, and other Bush Crime Family associates. THIS WILL BE THE BIGGEST OFFICIAL FRAUD CASE IN WORLD HISTORY.
When filed, this lawsuit will almost certainly be the development that will crack the immense edifice of systemic and deliberately subversive official corruption wide open and force it into the public domain once and for all – because the so-called ‘mainstream’ media wil surely be obliged, given the unprecedented size of this lawsuit, to pay attention to this one.
Of course, they will probably immediately get the wrong end of the stick, assuming (‘under advice’) that this was ‘just another giga-scam’ – rather than in reality a further component (albeit a scam without any historical precedent) of the orchestrated offensive perpetrated FROM WITHIN THE U.S. OFFICIAL STRUCTURES against US capitalism and the financial system masterminded by George H.W. Bush and his crime associates and financial technicians: OPERATION STILLPOINT.
And who features among the ‘partners’ of George Bush Sr. within the former Barrington Investment Group, now Deutsche AG, under the control of the DVD’s primary banker, Dr Joseph Ackermann, CEO of Deutsche Bank? Why, the former Leninist President of the Soviet Union, M.S. Gorbachëv.
• Are you beginning to get the picture?
• Recall that German long-range ‘Black’ counterintelligence, the heirs of the Abwehr (DVD), and Soviet ‘Black’ intelligence (fronted these days by Soviet Military Intelligence, GRU, for which ‘Prime Minister’ Vladimir Vladimirovich Putin is the public face), work together at high levels against ‘the Main Enemy’ – and have always done so. In this connection, the ‘successors’ to the KGB (FSB) are in charge of the Russian Federation’s outward-facing stance for international public consumption. The FSB operates a presentational policy which is the dialectical (Leninist) opposite of the secret ongoing responsibility and commitment of the GRU to preserve the integrity of the Leninist Party-State and its structures, which went ‘underground’ with the ‘changes’ of 1989-92.
THE CASE THAT WILL CRACK THE CRISIS WIDE OPEN
US authorities were reported to us on 3rd January 2010 to be so worried about this huge pending CMKM/CMKX lawsuit, which had been submitted in outline as a ‘proffer’ to them in advance, that frantic efforts were allegedly being made as this report was being prepared, to locate the $3.87 trillion ‘needed’ to ‘shut the CMKX people up’.
CMKM/CMKX was originally set up from within the CIA as yet another Bush Crime Syndicate-related Ponzi scheme, to finance OPERATION STILLPOINT (like everything else).
Under the original criminal scheme, the Securities and Exchange Commission was to serve (and did serve) as another trading platform for the Bush subversion operation. Originally, the intention had been to conduct this illicit phantom trading op. through the Federal Financing Bank (FFB), a special entity within the US Treasury which has been used over the years for ‘smoke and mirrors’ financial obfuscation purposes, and also to provide the Secretary of the Treasury with up to $15 billion of prospective ‘borrowing space’ (as allowed to the FFB by Statute) when Congress delays the raising of the Statutory Debt Limit, as it does every few years or so in order to remind the US Executive Branch that the Congress is supposed to control the purse strings; but that plan was abandoned when it was found that the FFB was subject to ‘too many restrictions’ which would be inconsistent with the underlying criminal intent.
Ironically, Congress won’t need to raise the Statutory Debt Limit – which is essentially now the sole remaining substantive whip that it can wield to force the Executive to recognise that it controls expenditure – with the start-up of the Dollar Refunding Programme, given that the tax accruals due to the US Treasury arising from the eight weekly trades will in due course obviate the necessity for the Statutory Debt Limit to be raised at all.
• This insight provides a possible explanation, beyond endemic corruption, for the resistance to overall resolution that has been the hallmark of the US Legislature over the years.
MASSIVE PONZI SCAM RUN FROM WITHIN BUSH’S S.E.C.
So the S.E.C. – which is responsible for monitoring the honesty and integrity of securities trades – was itself used as cover to establish and operate an off-balance sheet trading platform which was to be employed to clean up vast accruals by illicit means. This mechanism followed the standard intelligence deception principle that the most effective cover to operate from is from within the entity that is charged with monitoring and exposing the criminal activity to be perpetrated. It’s called a form of ‘sib’ operation.
Under George W. Bush, between June 2004 and 28th October 2005, it is alleged that no less than 2.25 trillion of phantom CMKM/CMKX stock were sold into the stock market under this S.E.C. cover – which has to rank as by far the most brazen Ponzi scam in world history: and one, furthermore, that was set up and perpetrated by and from within the US official structures with the specific intention of ‘screwing’ the investing public, notably the investors in CMKM/CMKX shares.
Of course, the S.E.C. has no right or legitimate power to allow or approve phantom trades to be conducted by its own personnel or on its behalf on an illicit trading platform – an obscenity which calls into question the validity of all its current and former lawsuits against myriad lesser market perpetrators since this unprecedented official Bush-developed financial aberration started.
On the contrary, we would expect market defendants convicted of dodgy dealing to be instructing their lawyers on the basis of this staggering emerging evidence that the Securities and Exchange Commission is itself a criminal enterprise.
Eventually, the illicit CMKM/CMKX proceeds from the PHANTOM SHARE trades were brought back into the Bush-CIA Crime Syndicate’s orbit via Tyler, Texas (Bush territory).
The reason that the CMKM/CMKX investors have legitimacy and standing is that, following an earlier lawsuit, the investors’ case as Ponzi victims, was upheld – so that they are now in the driving seat, even though the original scheme was a CIA front operation.
This state of affairs TERRIFIES multiple perpetrators across the board, and needs to be considered in the context of the CHANGE OF POLICY at the US Department of Justice and INTERPOL’s de facto diplomatic immunity and the consequent implications for Habeas Corpus.
http://www.free-press-release.com/news/200902/1233818172.html
February 4th, 2009
CMKM Petitions Criminal Agencies to File Charges in Major Stock Market Scandal
At CMKM Diamonds, we are fighting a war on multiple fronts. While we move forward with our own corporate lawsuits in an effort to return value to the Company, we are also urging our government to enact justice against those who have wronged our shareholders. In order to keep pressure on the DOJ, FBI, and IRS Task Force that has been investigating the fraud committed by those criminals who stole an estimated $250 million dollars from innocent CMKX investors, we have posted a petition seeking justice “in one of the largest and most blatant singular frauds ever perpetrated in our financial markets”. When enough signatures are accumulated to present a united front, we will present the petition to those who are in charge of the investigation and their superiors.
We have always believed that properly motivated, our shareholders are our greatest asset. This is a perfect opportunity to, in the words of Company Chairmen Kevin West, “unite this group of wonderful people, our shareholders, for a common cause.”
PLEASE go to http://www.petitiononline.com/CMKX/petition.html to sign the petition. Let the government Task Force know that WE WILL NOT GO AWAY QUIETLY. Let your voices be heard. Post it on message boards, discuss it in chat rooms, and send it to everyone you know. You do not have to be a shareholder to sign the petition, just a citizen who believes that justice still counts for something in our country. Let CMKM Diamonds be the first step in cleaning up the rampant corruption that plagues our financial system. United we can change the world.
———-
this is huge..and i bet you havent heard about it..things like this get kept very quiet..we dont want the peasants knowing about a case of fraud againstthe SEC for $3.7T..that would cause to much harm to the market..because..you see..the SEC is the regulatory body for the Dow..if they cant be trusted..then the whole thing collapses..because markets are built on emotions and feelings..
401
Nice, nice work seeker. This should be the story of the year…yet no one in mainstream media is talking about it, let alone mentioning it at all. Fantastic Find – once again your research ability and eye for corruption is wide open
they are to scared to mention it..its breathtaking if true..and it would severely hurt the worlds markets
i can assure you iys true.me and my family own millions of shares….its payday
..thankyou david..when do u expect a result?
cool
I’ll start to spread it over here
its gotta hit mainstream at some stage mario..thx
and over here too
thx Seek
I have made a website which is about HYIP and I think this might be a way to get financial independence in the actual world. What do you think about this? Please give feedback to see if I’m doing the right thing…
John
dont think so..
Hmmm nice post, was all new to me this but started reading a little more on it with the trusty google, interesting
Follwo the money to the money blog baby ;D
hey pablo..you got it..its a true case but is getting no information in the mainstream at all
Sounds like the movie “Stock Shock” where Sirius XM stock rises from the ashes. “Stock Shock” says the SIRI stock went down to 5 cents a share due to naked short selling. That was actually a great movie for learning all about Wall Street manipulation. Amazon has it on dvd or there is a trailer at http://www.stockshockmovie.com
thanks MT fan
In the first place nobody needed to “crack the case” of massive corruption. It was obvious and understandable to those who understood the impact of creation of the Federal Reserves (Thomas Jefferson warned about it), especially with the gold stolen from the Russian czar by the Rothschilds mafia as a result of the Bolshevik revolution (need links? Do a search for Eustace Mullins interviews and articles-there is a lot to learn from his 50 years of research in the Library of Congress). I think this article is wrong about the FSB and the principals it uses to operate, at least ever since Putin came to power in Russia. There is no “dialectical” approach or Leninist ideas. FSB uses Concept Of Public Safety, there is a lecture here on youtube.com. For those of you who are trying to filter through a pile of garbage and lies it is worth to listen to the lecture too. It will open your eyes to a lot of things. http://www.youtube.com/watch?v=6dq3RVTOTrg For those who are fluent in Russian, and you should be in order to fully understand what awaits for you ahead, here is the original link to the introductory lecture: http://www.kpe.ru/video-foto-materialy/lekcii-po-kob/tainy-upravleniya-chelovechestvom
hi winnie..thanks for the links and for commenting
.
WE NEED PRAYER S …OUR FAMILIES HAVE SUFFERED FOR A LNG TIME..
SOME HAVE DIED…WE WANT THIS TO BE OVER 6 YEARS AND THE MAIN MEDIA DON’T WANT THIS BECAUSE THE OWNERS OF US MEDIA ARE A PART OF THE MESS..
can you link me to the any relevent articles in the last week..i can do a follow up story then?
Here is a link to the last hearing with Al Hodges defending the Bivins lawsuit against a Motion to Dismiss by the defendants…
http://www.zshare.net/audio/7894805903af0af9/
Flying Moose(wordpress.com)
is there a link to a script?
It’s a professional production, worthy of passing along to anyone we’ve ever tried to explain naked shorting to.
http://video.google.ca/videoplay?docid=4490541725797746038&ei=KUfZStLwDpHKqwLkm-HHCg&q=phantom+shares&hl=en
thankyou fred
I for one did not join the owner’s group nor did the shareholders in my circle. I felt that instead of shareholder’s joining an owner’s group, the best way to prove a naked short and protect your legal interests was to take delivery of your stock certificate. It’s far more effective if everyone orders their stock certificate and we find out there isn’t enough to go around. This is where my concerns begin. I interacted with Kevin West especially during the revocation hearings, I was amazed when Leslie Hakula questioned Helen Bagley with regard to how many shares were outstanding in CMKX and she answered over 2 trillion. Obviously if there were over 2 trillion shares and only 800 billion outstanding, we have a naked short on our hands. At the time it was stated that there were over 200 billion shares in certificate form. This alarmed me and I told every shareholder I knew in the stock to pull their certificates immediately. They looked at me strange and said why would we pull certs on a pennystock? My answer was simple, if there is a naked short at some point the DTC is going to need our shares to settle the short. If we trade in the open market we will have the largest short squeeze of a lifetime and we could always sell our shares on a will deliver basis if that happens. But my other concern was that the company might go private, allow revocation, and only recognize shareholders with certificates. If the SEC doesn’t do their job it isn’t their problem, they know who their shareholders are because all the shares would be certed up to the 800 billion shares and the rest would not be recognized or not be allowed to move forward with the company. Therefore it was imperative to pull your certs before they are all gone or you run the risk that you are not recognized, why take the chance. I called Kevin the next day when I read the transcript and expressed my concern. I told him that I was pulling every share I could get my hands on before they were all gone. He chuckled and told me that everyone in the office at the law firm were doing the same after he read what I referred too. I asked him if he was going to advise the Owner’s group to do the same because it would beyond a doubt prove a naked short. He told me that the SEC had warned them against doing that otherwise they would charge them with market manipulation. This is where my problem begins. How is it that you take money from shareholders and give them a false sense of legal protection, in turn they don’t order their certs when they really should be. Meanwhile John Martin’s group is probably pulling all their shares and taking control of the company while the shareholders falsely think they are protected.
naked shorts..
This fraud as with any must be addressed by all!! Lets not be afraid to get off the couch at 6 pm and quit being victims, lets all dig in and win!!
can you give us and update on it brian?
Naked Short Selling of America and the World. Will Rupert Murdoch and the News Media continue to cover it up
Florida OFR presentation dated April 22nd, 2011 COALITION COMPLAINT AGAINST THE FBI/SEC/DOJ
This complaint is for all shareholders and covers all views, it has been passed by many shareholders before going in and all have agreed to file it for themslves with the Las Vegas FBI and other authorities as a show of unity. Enough is enough, it is time to demand the authorities get investigated for their role in this fraud and its cover up, or just pay us!
July 17, 2011
Assistant Special Agent in Charge – William C. Woerner
1787 West Lake Mead Boulevard
Las Vegas, NV 89106-2135
Phone: (702) 385-1281
Fax: (702) 584-5460
E-mail: Lasvegas@ic.fbi.gov
Dear Sir,
My name is Dave Nelson and I represent the CMKX Shareholders for Justice, a group of shareholders who demand an independent investigation into the many Authorities involved in the CMKM Diamonds Inc (CMKX) fraud case. We have entered evidence which clearly shows that the SEC and other authorities aided and abetted corrupt insiders of CMKX currently indicted by the DOJ and covered up the fraud committed by countless Wall Street firms, and/or this was a DOJ sting operation, in which case the Authorities are illegally withholding the victims’ restitution collected in that operation so perpetrators could avoid criminal prosecution. In either case the facts call for an independent investigation into the Authorities role in this fraud and its cover up, a fraud which has directly cost the shareholder of CMKX hundreds of millions of dollars. Authorities involved include: the SEC/DOJ/FBI/IRS/RCMP. We demand accountability!
We have shown that fraud and manipulation is the modus operandi of the SEC in particular and other Authorities hereby mentioned in evidence submitted to the Las Vegas FBI and many other regulatory agencies. A brief history of corruption of the aforementioned authorities in the form of a pdf file was delivered to Jerald Burkin of the FBI and to various Authorities in Canada who have taken no action. This evidence outlines the timeline of the largest fraud in history, the counterfeiting of the stock market, which occurred prior to 1996 when FBI Special Agent Robert Wright launched Operation Vulgar Betrayal, through Operation Uptick in 1999-2000, and continues unabated to the present. Former Special Agent Wright said, in essence, that the U.S. Department of Justice had been captured by Al Qaeda’s most important financiers, and given the crimes he talked about continue until today it is clear the agencies involved are still captured. The proceeds of these crimes went to organized crime families, to terrorists, and the major Wall Street brokers who aided them. This evidence was entered to Burkin in early 2009, along with the evidence in the CMKX case in particular which followed the same pattern of the SEC aiding massive counterfeiting:
http://cmkx.info/CMKM-BRIEF-HISTORY-OF-SEC-CORRUPTION-2010-06-08.pdf
Additional evidence implicating the Authorities in directly aiding the corrupt insiders of CMKX and others who defrauded shareholders is included in a letter by Mark Faulk, CEO of CMKX. He outlines the fraud that was allowed to occur by the SEC and other Authorities; all of whom stood by silently as the fraud happened after they had subpoenaed the records that were used in the indictments:
http://www.cmkmdiamondsinc.com/letter-m_index.html.
In the CMKM Diamonds Inc. case, specific evidence was given to Mr. Burkin which clearly showed the SEC, FBI, DOJ, and IRS were complicit in the crimes which took place and the cover up of the fraud by all of the Wall Street firms involved, a mirror image of Operation Uptick and Operation Vulgar Betrayal. Here is a list of the crimes alleged to have been committed by the SEC, FBI, DOJ, and IRS, further known as The Authorities in the CMKM Diamonds Inc. case. This list either shows the Authorities allowed this crime to take place and aided and abetted the fraud committed against CMKX shareholders, or they allowed this fraud to take place to run a sting operation as outlined in Al Hodges bivens case and have harmed all victims by withholding illegally their restitution for over five years. There clearly there needs to be an independent investigation into these points:
1. The Authorities investigation (into CMKX) was well under way by May 2004, before hundreds of billions of shares were sold to investors in a publicly traded company and the money laundered. Corporate insiders were aided and abetted in their crimes by high-powered attorneys, accountants, transfer agents, major banking institutions, brokerage houses, and clearing firms. It occurred right under the noses of the SEC and NASD (now FINRA); both agencies ignoring dozens of blatant warning signs, allowing the scam to go on for years. The Coalition asks for an investigation into why the Authorities just allowed these crimes to happen and the money laundered over years when it was their duty to stop these crimes when they detected them in 2004, costing the company and its shareholders hundreds of millions of dollars.
2. The Coalition alleges and has provided evidence that Leslie Hakala conspired with ex-SEC attorney D. Roger Glenn (who wrote opinion letters allowing over 300 billion shares of stock to be dumped into the market) to facilitate the sale of hundreds of billions of shares of CMKX stock, all proceeds from those sales were apparently stolen right under the nose of The Authorities while they watched. D. Roger Glenn escape and indictment by the DOJ for his role in this fraud. PR person for CMKX, Andrew Hill, has publicly stated Leslie Hakala was fully aware of what was happening inside CMKX and had been in contact with D. Roger Glenn in 2004. Furthermore, the FBI never questioned Andrew Hill, even though he had pertinent, incriminating first-hand information in this case. The Coalition asks for Andrew Hill to be deposed and Leslie Hakala and other SEC enforcement attorneys investigated for their role in this fraud and its cover up.
3. When Leslie Hakala met with CMKX management and shareholders lawyer Bill Frizzell on May 11th 2005, she was fully aware of the fraud inside CMKX at this time. Bill Frizzell presented her with indisputable evidence of massive counterfeiting of CMKX stock, a fact that later proved to be true as 622 billion unregistered shares were sold in CMKX stock out of 703 issued and outstanding shares in total. Mr. Frizzell had direct evidence of hundreds of billions of unregistered share sales by brokers such as Etrade, Ameritrade, TD Waterhouse, and others. None of those brokers were ever indicted and no civil action has ever taken place despite the indisputable evidence of their crimes. Not only did Leslie Hakala not stop these crimes from happening, and saving shareholders hundreds of millions of dollars, but she allowed the fraud to continue. These corrupt brokers were allowed to sell hundreds of billions of additional counterfeit shares, steal the illegal proceeds, and then have their crimes completely covered up. Hakala allowed corrupt management to launder their proceeds from their crimes for years. The Coalition asks for an immediate investigation into the evidence presented at that meeting and to the SEC actions and inactions after that meeting.
4. Co-conspirators John Edward Dohnau, Michael Williams, and Rendal Williams, plus a cast of numerous other associates have not been charged for their part in this massive fraud. Why?
5. The phone records from NevWest, which show that they contacted the SEC each time Edwards came in with CMKX certs to sell, many of which were clearly forged and fraudulent, some even “signed� by an individual who had been deceased for months. Instead of taking action to halt the obvious fraud against innocent shareholders, the SEC and NASD (FINRA) ignored the evidence and dozens of other red flags, allowing the scheme to continue unabated, costing unsuspecting buyers of CMKX stock hundreds of millions of dollars. The Coalition wants access to those phone records and an investigation into why the SEC allowed those certs to be sold after they had already subpoenaed the fraud records used in the indictments and SEC civil action.
6. Clearing firm Computer Clearing Services (now owned by Penson Worldwide, Inc.) helped John Edwards trade over 250 billion shares of CMKX stock totaling over $53 million. Clearing firms and brokers weren’t the only ones who ignored red flags that should have triggered the filing of Suspicious Activity Reports. Several Nevada banks, most prominently Silver State Bank and Wells Fargo Bank, allowed CMKM Diamonds and related fraudulent companies to run hundreds of millions of dollars through dozens of accounts. Penson is mentioned in the article, which documents the counterfeiting of the stock market by Wall Street, organized crime and terrorists; a crime which all Authorities were fully aware of before the year 2000 and did nothing to stop although trillions of counterfeit shares were sold into the market and trillions of dollars stolen from the general public: http://www.marketrap.com/article/view_ar….shor t-selling. The Coalition asks for an investigation into Penson Worldwide’s history of covering up the crimes of Wall Street, organized crime, and terrorist naked short sales, and those of John Edwards in particular.
7. The Authorities subpoenaed the Silver State Bank regarding suspicious activities on September 5th 2004 (the Silver State Bank had no action taken against it for its role in this fraud) BEFORE hundreds of billions of shares were sold in CMKX stock. The evidence gathered from that subpoena showed 64 million dollars went through the Silver State Bank. Among the transactions executed by Silver State Bank after those subpoenas include:
• Wire transfers totaling hundreds of thousands of dollars were executed with only the notation “transferring to Personal Acct. per cust. Transfer via phone� .
• Checks from various accounts set up as shell companies and controlled by Casavant and Edwards written out only to “CASH� …including one for $350,000.
• Multi-million dollar wire transfers between Edwards and Casavant run through dozens of accounts they controlled there.
• Millions of dollars written out of company accounts to Casavant, his wife Carolyn, and several family members; often on temporary checks.
The Coalition asks for an investigation into why the Silver State Bank continued to allow money laundering into the millions of dollars when the Authorities had already subpoenaed the fraud records used in the indictments and civil actions. We also ask for an investigation into why the DOJ and SEC allowed these crimes to continue unabated when they already had the evidence of the crimes.
8. The Authorities allowed Robert Maheu, Urban Casavant, and other management to continue to promote the sale of CMKX stock through various means, including a drag racing team, after they were fully aware of the fraud inside CMKM Diamonds Inc. Robert Maheu, Roger Glenn and Don Stoecklein were not indicted for his role in this fraud although six hundred billion shares were sold while they ran CMKX. The Coalition wants an investigation into why these individuals were not indicted; why the DOJ and SEC continued to allow them to promote this fraud after they had subpoenaed the fraud records; and why they allowed these masterminds the time to launder their proceeds from their crimes.
9. In letters to other brokers in mid-2005, shareholders lawyer Bill Frizzell not only identified the brokers who sold over 300 billion shares of CMKX stock, but those brokers continued to sell unregistered shares for months while The Authorities watched. The money from the sale of hundreds of billions of shares (approximately 190 million dollars) was stolen by these brokers, with none of those known brokers being indicted, and none of that money recovered. Why were these brokers not indicted, and why were their crimes covered up? Why did the Authorities continue to allow them to sell unregistered securities in CMKX stock when the fraud was clearly detected?
10. In Bill Frizzell’s letter to TD Waterhouse in Canada, he explains that none of the shares sold by them were even on the NOBO list, meaning they were sold unregistered. TD Waterhouse continued to sell unregistered shares of CMKX stock for months, as did all other Canadian brokers. In his letters, Mr. Frizzell also stated that the SEC was watching this very closely. Mr. Frizzell stated in his deposition to the SEC that none of the Canadian brokers had shares on the NOBO list, indicating all shares sold in Canada were sold unregistered. There has been no action against any Canadian brokers from The Authorities and since all illegal shares sold by Canadian brokers were grandfathered, they would not have to cover their fraud. The Coalition asks that there be a public inquiry (by an outside agency) into the grandfathering of trillions of counterfeit shares by Wall Street, organized crime, and by terrorists. The crimes could have been stopped well over a decade ago, but were allowed to happen, and then the fraud covered up. Why?
11. According to Bill Frizzell, Andrew Petillion (Branch Chief of Enforcement at the Pacific Regional Office for the SEC) issued this warning with regards to his evidence of the naked short in CMKX stock:
“By the way, if this is an orchestrated short squeeze against the brokerage houses to make the stock price go up, we will come after those who are responsible. We would not look kindly on a cert pull because it would cause market manipulation.�
The Authorities allowed CMKX stock to be manipulated down, but would not allow the natural correction for this: a short squeeze. This mirrors what the SEC said to David Patch regarding the Grandfather Clause: it was supposed to stop runs in stocks which had been manipulated by Wall Street firms, which in-turn counterfeited trillions of shares of stock in hundreds if not thousands of publicly traded companies. An example of this is Eagle Tech Communications. Authorities knew Eagle Tech was the victim of counterfeiting by Wall Street firms and crime families, but grandfathered those counterfeit shares so they would never have to be covered, while protecting the criminal firms at the same time. The Coalition wants to know why the DOJ and SEC allowed Wall Street firms to create the Grandfather Clause (with the help of the SEC) as this allowed felonies to be covered up; felonies committed by terrorists and organized crime families.
12. The Authorities and alleged corrupt Judge, Brenda Murray (see the modus operandi of Brenda Murray in evidence presented regarding the Gary Aguirre cover up), would not allow evidence of massive naked shorting in CMKX stock in the administrative hearing (October 5, 2005) that eventually ended up in the revocation of CMKX stock. Financial expert Jim DeCosta analyzed the naked short in CMKX stock and found it to be 14-1. No evidence of any other broker’s fraud or the fraud already detected by The Authorities was entered into the hearing, and billions of shares of CMKX stock traded afterwards; all monies stolen from shareholders. The Coalition asks for an investigation into the cover up of the largest naked short in history by Judge Brenda Murray and the SEC enforcement attorneys. The Coalition asks for an investigation into why the Authorities allowed this crime to continue when clearly they were aware of it, and why did they allow all of the money to be stolen from the victims in this case when they could have stopped it in 2004?
13. In Civil Action No. 2:08-cv-0437, 4-7-08, United States District Court for the District of Nevada, Leslie Hakala alleges that “To divert attention from their own dumping of CMK shares, Casavant persuaded CMKM’s investors that the reported high trading volume in CMKM stock reflected extensive “naked short selling� rather than ordinary stock dilution.�
Leslie Hakala was fully aware that there was massive naked shorting in CMKX stock by Wall Street firms (evidence entered to the FBI in this case), and that she concealed the fact that there were other perpetrators besides the insiders of CMKM Diamonds Inc. This is a mirror image of the victims of Operation Uptick. From March 2003 through May 2005 John Edwards sold almost 260 billion shares of the purportedly 622 billion registered/unrestricted CMKM shares. That leaves approximately 362 billion purportedly registered/unrestricted CMKM shares that Leslie Hakala fails to account for in said civil action. The Authorities try and make it look like all shares and money stolen was by the corrupt insiders. The Coalition asks for an investigation into Leslie Hakala’s actions which appear to be nothing short of criminal and follow the modus operandi of covering up the crimes of Wall Street firms.
14. In its Grand Jury Superseding Indictment 2-09-CR-00132-RLH-RJJ, 5-27-09, United States District Court, District of Nevada, the Grand Jury charges that:
“…To create the appearance of an active and established market for CMKM stock, and to disguise the fact that the conspirators were virtually the only sellers of CMKM stock…�
DONALD STOECKLEIN DEPOSITION, 1-24-06
In said deposition, Donald Stoecklein testifies that naked short expert Jim Decosta, with 25 years of experience, told both Bill Frizzell and him that a 14 to 1 short position exists in CMKM stock.
That means that for every one legitimate share that exists, 14 naked short shares exist, which in turn means that numerous naked short sellers exist. In said deposition, Donald Stoecklein testifies that they obtained a NOBO list and the number of CMKM shares on that NOBO list exceeded the number of CMKM shares on the list of 1st Global Stock Transfer, which in turn means that naked short sellers exist. The Coalition demands that Jim DeCosta’s report be made public along with the cert pull deposition which shows the Authorities made false statements in this case to cover up the crimes of many Wall Street brokers by making it look like corrupt insiders were the only sellers of unregistered shares of CMKX stock.
15. On 6-24-09, the Securities and Exchange Commission filed Motion for Summary Judgment Against Defendant John Edwards (#991), Motion for Summary Judgment Against Defendant Daryl Anderson (#102), and Motion for Summary Judgment Against Defendants Kathleen and Anthony Tomasso pursuant to Civil Action No. 08- CV 0437, 4-7-08, United States District Court for the District of Nevada. In said Motion for Summary Judgment, the Securities and Exchange Commission alleges, “CMKM provided investors with phony maps and fabricated videos of alleged mineral claims in North and South America.�
The following was left out of the Administrative hearing. The following are excerpts from Regional Triaxial Aeromagnetic Survey Assessment Work Report by N. Ralph Newson, William Jarvis on the Fort a la Corne Diamond Project:
“Drilling results and additional ground magnetic and gravity surveys have shown the best known kimberlite bodies to be bedded, and to have a very different shape from most known kimberlite bodies. In most of the well-known diamond mines in Africa, for example, and in those in the NWT in Canada, the upper portions of the kimberlite bodies have been eroded, leaving only the feeder pipe, which has a “carrot� shape, getting smaller in diameter with depth. However, in the Fort � la Corne swarm, the tops of the kimberlitic volcanic edifices are COMPLETELY PRESERVED [emphasis added by author], and they are shaped more or less like a soup bowl, with two larger horizontal dimensions, and one smaller vertical dimension. Several of these have an inferred geological resource (based on a few holes and on geophysical modeling) in excess of 100 million tonnes, one has nearly a billion tons, and one group of five which are close together, or perhaps coalescing, contain about 2 billion tons of kimberlite. There are thus HUGE VOLUMES OF KIMBERLINE WITHIN A FEW HUNDRED METRES OF THE SURFACE.� [Emphasis added by author].
The Coalition asks for an independent investigation into all claims held by CMKX past and present, including the warehouse full of core samples currently held in a warehouse in Saskatchewan, not mentioned in the hearing, under the control of Emerson Koch, Urban Casavant’s partner. We ask for an investigation into all land lost during the era where the DOJ and SEC allowed the masterminds in CMKX management to commit fraud against the shareholders or when the DOJ sting operation was on.
16. If this was purely a fraud, then the DOJ/FBI should have already extradited Urban Casavant since the evidence they used against him was from late 2004. It is unacceptable that the Authorities allowed Urban to sell hundreds of billions of shares after they knew he was committing fraud, it is unacceptable the Authorities gave him time to launder that money, and it is unacceptable they have not arrested the largest penny stock swindler ever. He is free to do what he wants and spend the money he stole from shareholders while we lost everything and our company was destroyed. The Coalition demands to know why Urban Casavant has not been arrested for his crimes.
17. The SEC revoked CMKM Diamonds Inc on October 28th 2005, knowing that would prevent the perpetrators from ever having to cover their naked short positions in CMKX stock and in turn ensuring that the shareholders would never recover the damages they suffered. Thousands of victims in other companies of the exact same crime also received no compensation from this massive naked shorting fraud. This tactic was used in concert with the perpetrators who counterfeited the stock market into the trillions to cover-up the fraud and allow the criminals to escape from having to cover their counterfeit shares. The perpetrators in concert with the SEC and DTCC grandfathered trillions of dollars in felony counterfeit stock sales to hide the largest crime in history. The Coalition asks for a full investigation into the Grandfather Clause and the hundreds to thousands of companies who were victims of the illegal clause and in particular all firms who had their shares Grandfathered that sold illegal CMKX stock.
The evidence above is just the tip of the iceberg on the damage caused to the victims in this case by the Authorities. If this was just purely a fraud there is more than enough evidence to call for an independent investigation into the Authorities’ role in this fraud and its cover-up. If this was a sting operation, then there is clear, insurmountable evidence that crimes are still happening, preventing the restitution for all bona fide CMKX shareholders from being released. The Victims have been and continue to be harmed- either way.
Here is evidence entered to SA Burkin, the DOJ Victims’ Rights official in Nevada, and to Gayle Jacobs of the Las Vegas FBI, which indicates the Authorities allowed this fraud to continue as they were using CMKX as a vehicle in a DOJ sting operation run in concert with Robert Maheu. This operation resulted in perpetrators secretly paying into a fund for the victims in this case to avoid criminal prosecution. I asked Debra Waite of the Victims Rights office to investigate the evidence below, and she refused, but referred me to the Las Vegas FBI where I already had asked Jerald Burkin to investigate this evidence and corroborate Al Hodges allegations. This evidence clearly affects the indictments Jerald Burkin is working on in the CMKX case and it is his duty to investigate this evidence. He refused. The Coalition demand that an independent investigation into the Nevada DOJ/FBI’s handling of this case. Also, the shareholders request that an immediate investigation take place into Al Hodges June 17th letter to a representative of China where he claims President Obama is committing extortion which is preventing the release of our restitution and all other allegations put forth by Mr. Hodges. This letter is included in this complaint and on its own merit should be the basis of an immediate criminal investigation.
Below are the second set of questions and requests that the Coalition feels needs to be answered legally by the FBI and SEC.
1. Why is the DOJ/FBI in Nevada refusing to corroborate Al Hodges allegations and investigate his evidence which clearly contradicts the Nevada DOJ and FBI, fully-knowing that pertinent information would affect the indictments in this case? It is the legal duty of the FBI in this case to investigate this information as it comes from a credible source who is directly involved in this matter.
2. Why has the FBI refused to investigate the allegations that extortion is taking place which prevents the release of the restitution illegally held from victims in this case? Why have they not questioned Al Hodges and Michael Cottrell regarding this matter when they can corroborate the allegations put forth? The FBI apparently is doing nothing to stop the crimes currently being committed, further harming the victims in this matter.
3. Mr. Hodges says he has an eye witness to the fact that the restitution should have been released over five years ago. It is the legal duty of the DOJ/FBI to depose Al Hodges’ witness to the facts as it has dramatic impact on their current indictments in this case, if necessary he should be subpoenaed.
4. The DOJ/SEC subpoenaed the fraud records used in the indictments and civil actions in 2004, then allowed the fraud to continue for well over a year. Was the DOJ/SEC allowed to use CMKX and its shareholders as a vehicle in a sting operation and hide that fact from them? I talked to officials at the SEC, but didn’t mention CMKX; those officials said that it is the SEC’s legal duty to stop the fraud when detected, to halt the stock. In CMKX’s case, they not only didn’t stop the fraud they allowed it to continue unabated costing shareholders hundreds of millions of dollars in loses.
5. Was it the legal duty of the DOJ/SEC to include the fraud records they had subpoenaed in the SEC file given to company officials and lawyers in June 2005? Those records ended up being the basis for most of the actions by the DOJ and SEC against Urban Casavant and John Edwards. I personally spoke to John Martin of the Owner’s Group (which hired Bill Frizzell to represent the shareholders) and according to Martin they were fully aware of the Silver State Bank fraud records, as were all shareholders as it was on the internet in Feb. 2005. The fact that the management and shareholders’ lawyer had access to these confidential records and then worked with Urban Casavant proves this was either a sting operation, or they aided this fraud and its cover up. The Coalition demands to know exactly what confidential banking records management and Bill Frizzell were privy to and when to prove if this was a sting operation.
6. Mr. Hodges claims in his bivens case that the DOJ/SEC told CMKX officials that the release of funds was imminent on many occasions, but this was not true. Is it legal to have secret negotiations to take place regarding our restitution, and is it legal for the DOJ/SEC to lie to company officials about the release of their money? Does that not violate the rights of the victims and should the DOJ/FBI be required by law to investigate the facts surrounding these negotiations? Exactly who were these officials?
7. Reece Hamilton, plaintiff in Mr. Hodges bivens case, claimed that Mr. Hodges trustee received the codes from the authorities to release our restitution on or about DEC 30/31 2009, and that the taxes were taken out at that time. This was later confirmed by Mr. Hodges, and the tax issue confirmed in a complaint to AG of New York Andrew Cuomo, which is in the evidence package. Did giving our trustee the codes and having them not work violate our victim’s rights, and should it be the duty of the DOJ/FBI to investigate the officials who gave those codes and why they didn’t work? Who exactly gave the codes to our trustee?
8. Mr. Hodges filed a complaint with the AG of New York stating taxes were taken out of the settlement funds, which has now violated several banking laws, why is there no investigation into these crimes?
9. Mr. Hodges, in an update to his plaintiffs, said that he hears that the DOJ signed off on the distribution of our money, and says that his trustee is in constructive control of that money. He said he has three independent eye witnesses who have seen the packages coming to all shareholders with their restitution in it. It is the legal duty of the DOJ/FBI to investigate these eye witnesses who have seen these packages as they contain the restitution for the victims in this case?
10. Plaintiff Robert Hollenegg contacted the London FBI, and has contacted the Las Vegas FBI to give his statement of the facts as he knows them. He will corroborate public statements he made including the fact he was on the phone with Al Hodges when the funds were transferred to our trustee; funds which have still not been distributed to the victims in this case. Gayle Jacobs of the Las Vegas asked for Mr. Hollenegg’s contact information but did not contact him as of yet. Why has Robert Hollenegg not been interviewed and the facts in question, substantiated?
11. Mr. Hodges claims to have first-hand knowledge that the fund containing the restitution for all CMKX bona fide shareholders was not released BECAUSE it was attached to the World Global Settlements. It is the legal duty of the DOJ/FBI to investigate CMKX being attached to the World Global Settlements and to confirm or deny Al Hodges direct knowledge of this? Mr. Hodges supposedly has direct knowledge that Senators were briefed on the situation and the pending release of the World Global Settlements, which includes the restitution of funds for all bona fide CMKX shareholders. Hodges can corroborate this fact made public by plaintiffs in his bivens case. It is the FBI’s duty to corroborate with Al Hodges the public comments made by the plaintiffs in his case; public comments which were updates directly from Mr. Hodges and entered into the FBI?
12. Mr. Hodges has an eye witness to the deals made by the DOJ and Robert Maheu in Las Vegas; he claims these deals were videotaped. The Coalition wants these tapes made public immediately if our restitution is not released.
13. Work was done to identify the brokers, who counterfeited CMKX stock that includes Jim DeCosta’s report; Susanne Trimbath’s report; and the Cert Pull work product in possession of the SEC; all of which were hidden from the public. Is this not clear evidence of a cover up of the crimes committed by Wall Street brokers? The Coalition wants all those records made public immediately and those experts deposed, or our restitution released. These records will show which brokers stole 190 million dollars from CMKX shareholders, and will allow us to take legal actions against them if Mr. Hodges is lying and there were no deals made in secret by the DOJ and Robert Maheu.
14. The Coalition asks for a complete list of what documents were given to CMKX management in the SEC file, and exactly what confidential banking records CMKX management and Bill Frizzell were privy to and when. This will immediately prove whether this was a sting operation, or whether these individuals aided Urban Casavant to commit fraud.
15. Several letters were written and made public by Al Hodges to different world leaders that allege crimes were or are being committed by high ranking officials in the United States, including the board of the Federal Reserve. These crimes affect the release of our restitution and the Coalition would like an immediate investigation into these allegations. A list of names and contact information from all letters is available to corroborate their authenticity.
16. In file no. S7-19-07, Bud Burrell, consultant in the John O’Quinn multi trillion dollar lawsuit against Wall Street brokers for naked shorting, states the following regarding CMKX: “No fewer than three federal criminal confidential informants were involved in the deal before the stock ever started trading� . The Coalition would like this investigated and Bud Burrell deposed as he has information regarding the sting operation that took place. He can also comment on the size of the overall fraud that was covered up over the past decade and the Authorities role in that cover up.
If the above isn’t proof enough that a thorough immediate investigation be conducted of the DOJ, the SEC and the FBI, then perhaps what is written below will convince you from deepcapture.com. This is one of the Authorities own admitting the truth over a decade ago, the Authorities were and are completely captured. This is evidenced by the fact the crimes talked about below continue unabated to today:
“In 1996, FBI Special Agent Robert Wright launched Operation Vulgar Betrayal, the FBI’s first major effort to crack down on what would later be termed the “SAAR Network� of financial entities with links to Hamas, Al Qaeda, and other jihadi outfits. Among Agent Wright’s principal targets were the billionaire hedge fund manager Yasin al Qadi (who, as I say, was Osama bin Laden’s favorite financier) and his U.S.-based bagman, Yaqub Mirza. But Wright (who referred to Yasin al Qadi as “Al Qaeda’s banker� ) was removed from the investigation in 1999. Operation Vulgar Betrayal was shut down in 2000. According to Wright, his team’s efforts were foiled by U.S. politicians and FBI higher-ups who were unnerved by the fact that he was investigating powerful people who had considerable influence in both Washington and Saudi Arabia (ostensibly a key U.S. ally). Former Special Agent Wright said, in essence, that the U.S. Department of Justice had been captured by Al Qaeda’s most important financiers. The capture apparently extends to the SEC, which has shown no signs of investigating the trading of people like the billionaires who comprise Al Qaeda’s Golden Chain and who funded the SAAR Network. (In fact, in the view of Deep Capture, the capture of the SEC by criminal financial operators is essentially total, unlike the DOJ.)
When Agent Wright blew the whistle on the political interference with his FBI investigation, he literally broke down in tears as he publicly apologized for the FBI’s failure to complete its mission.�
In conclusion, the Coalition demands our restitution be released immediately, or a thorough independent investigation into the evidence entered in this complaint. We demand an outside agency investigate on our behalf as we have clearly shown that the Authorities are not capable of being unbiased as Former Special Agent Wright said, in essence, that the U.S. Department of Justice had been captured, he should have included the SEC.
thanks fred..can you give me a short synopsis on where this case is at in your opinion..
The CMKX Shareholders Coalition for Justice (Coalition) respectfully submits to the court that the Coalition seeks relief from filing an administrative claim with the Securities and Exchange Commission (SEC) in the case: CMKX Shareholders Coalition for Justice, Plaintiff and The US Securities and Exchange Commission, Defendant. The Coalition has submitted evidence that shows that the SEC has covered up its ineptness and corruptness in the aforementioned case in particular. Furthermore, the Coalition has submitted evidence that shows that the SEC has covered up its ineptness and corruptness in the financial markets in general. During numerous congressional hearings, the members of congress who have questioned various higher-ups of the SEC, have not only proven that employees of the SEC have incessantly failed to perform their sworn/fiduciary duties which are to oversee the securities markets, to enforce the federal securities laws, and to protect investors, they have actually become perpetrators against the very investors whom by law they are mandated to protect.
Furthermore, the Coalition requests that the court immediately take jurisdiction of said case. Unfortunately, the ineptness and corruptness of the SEC continues unabated. Even the United
States Senate has become unwilling to put up with the ineptness and corruptness of the SEC any longer, and therefore has introduced SB605, a bill that would require the SEC to reinstate
the uptick rule and effectively regulate abusive short selling activities — In other words, said bill would force the SEC to perform its sworn/fiduciary duties that, by law, it is already mandated to perform. By refusing to enforce the Securities Act of 1933 and the Securities Echange Act of 1934, the SEC has aided and abetted the crime of counterfeiting of the stock market. The SEC purposely allows RULE17A to be contravened daily by those they collude with on Wall Street. The SEC allows billions of shares to be counterfeited daily. Therefore time is of the essence. To put an end to this worldwide fraud, the Coalition demands that the SEC perform its sworn/fiduciary duties and begin to immediately enforce RULE17A as it is mandated to do.
The SEC purposely makes rules, clauses, and exemptions that directly contravenes its constitutional mandate to protect investors, an example of which is the market maker exemption, or the Madoff exemption, which allows mass counterfeiting of the stock market. The SEC purposely created that exemption and the Grandfather Clause to protect the naked shorters and to conceal their illegal naked short sales. These actions by the SEC prove they are not capable of being unbiased. By its corruptness, the SEC facilitates pandemic counterfeiting of the stock market.
The Coalition presents clear evidence the SEC not only broke its constitutional mandate to protect investors, but also engaged in criminal cover-ups in different cases involving counterfeiting of the stock market inn general and CMKM in particular. These cases clearly show the SEC is incapable of being unbiased, as they are protecting their own culpability. The evidence will show that Judge Brenda Murray was directly involved in the cover- ups of both CMKM and Gary Aguirre, who was investigating market wide corruption. The Coalition presents the following examples that clearly show the SEC is incapable of being unbiased, and in fact has been involved in worldwide criminal cover-ups that warrant a Special Prosecutor or International Tribunal to investigate:
Here Rep. Ackerman (D-N.Y.) is referring to the SEC when investigating the cover-up of the Bernie Madoff case, “Your contribution to this proceeding is zero. We thought the enemy was Mr. Madoff. I think it’s you.�
Senator Charles Grassley (R-Iowa), who spearheaded the investigation (into the Gary Aguirre cover-up) with Specter, said, “[i]t looked like the lawyers for the wrongdoers wrote the decision.� In January 2007, the Senate released a preliminary report. Marcy Gordon of AP News summarized it: “an official review raises serious questions about the Securities and Exchange Commission’s handling of an insider- trading investigation and the possibility of a cover-up amid allegations of political interference….After taking testimony and reviewing thousands of documents, many of them provided by the SEC, the judiciary panel’s preliminary findings show ‘extraordinarily lax enforcement by the SEC and … may even indicate a cover-up by the SEC,’ [Senator Arlen]
Specter said. The SEC’s handling of the matter, including a review of the attorney’s allegations by the agency’s inspector general, has all of the earmarks of the obstruction of justice’, he said.� The Senate’s report stated the following conclusions (emphases in the original): “Staff Attorney Gary Aguirre said that his supervisor warned him that it would be difficult to obtain approval for a subpoena of John Mack due to his ‘very powerful political connections.’ Aguirre’s claim is corroborated by internal SEC emails, including one from his supervisor, Robert Hanson. Hanson also told Aguirre that Mack’s counsel would have ‘juice,’ meaning they could directly contact the Director or an Associate Director of Enforcement. “SEC management delayed Mack’s testimony for over a year, until days after the statute of limitations expired. After Aguirre complained about his supervisor’s reference to Mack’s ‘political clout,’ SEC management offered conflicting and shifting explanations. “The SEC fired Gary Aguirre after he reported his supervisor’s comments about Mack’s ‘political connections,’ despite positive performance reviews and a merit pay raise.
“After being contacted by a friend in early September 2005, Associate Director Paul Berger authorized the friend to mention his interest in a job with Debevoise & Plimpton. Although that
was the same firm that contacted the SEC for information about John Mack’s exposure in the Pequot investigation, Berger did not immediately recuse himself from the Pequot probe. Berger ultimately left the SEC to join Debevoise & Plimpton. When initially questioned, Berger’s answers concerning his employment search were less than forthcoming.
“The SEC’s Office of Inspector General failed to conduct a serious, credible investigation of Aguirre’s claims.�
http://www.deepcapture.com/wall-street-captures-the-sec/
From Investigatethesec.com, the Judge that is referred to in these comments is the same Judge Brenda Murray who colluded to keep vital information out of the CMKM Administrative Hearing,
which directly damaged all shareholders. This evidence would have proved the SEC colluded with the previous CMKM management that masterminded the pump and dump scam. It would have also disclosed the names of the other brokers that counterfeited CMKM stock, the names of which are still being was covered up. The following is from investigatethesec.com: “Then the agency’s cover-your-@$$ team went into action. An administrative law judge, one Brenda Murray, was assigned to second-guess Kotz’s report (Inspector General of the SEC). Just a few weeks later, her 15-page paper exonerated the two officials who Kotz said should be disciplined. Kotz was shocked and said so publicly.�
“Now we get to the heart of the agency’s double-dealing. As Senator Specter stated, Brenda Murray “was described in press accounts as an administrative law judge, and it was not until
further inquiry that the SEC admitted she was not acting in a judicial capacity in issuing her decision.� In short, the agency picked a loyal staffer who happened to have the title
“administrative law judge� and had her exonerate the officials who had been sharply criticized by the Senate committees and by the inspector general. But she was not acting as a judge at all
— just a soldier taking orders.
“Murray’s quickie report “was completely irregular in every detail,� says Aguirre. “It was outside the jurisdiction of an administrative law judge. The SEC pulled a scam.�
“In the same report in which she cleared Aguirre’s nemeses, Brenda Murray vindicated an agency official who closed an investigation into the derivatives dealings of Wall Street’s
Bear Stearns in 2007. Early the next year, the Wall Street firm was rescued from bankruptcy when it was forced into J.P. Morgan, backed by $29 billion of federal money. Bear’s derivatives
gambling was to blame. The agency missed it and then exonerated itself. And the agency is going to look into whether it did its job properly in the Madoff case? Come now.”
http://www.investigatethesec.com/drupal-5.5/?q=node/567
The following are examples from the Bernie Madoff cover-up. The SEC is currently being sued by Madoff Victims by Howard Elisofon for their negligence in this case:
Referring to the SEC in the Madoff case, Rep. Ackerman (D-N.Y.) “Your contribution to this proceeding is zero. We thought the enemy was Mr. Madoff. I think it’s you.� From whistle blower Harry Markopolos
“FINRA is definitely in bed with the industry.� Asked later by Rep. Kanjorski about those comments as well as which one Markopolos thought was better, “a corrupt regulator or an
incompetent one,� Markopolos answered, “I’d give the SEC an A+ for incompetence and FINRA an A+ for corruption.
The current head of the SEC, Mary Shapiro, was head of FINRA, and who Harry Markopolos said was in bed with the industry. She was also a dear friend of Bernie Madoff. According to Bernie Madoff: Madoff also told Kotz that SEC Chairwoman Mary Schapiro was a “dear friend,� although she “probably thinks, ‘I wish I never knew this guy.’�
http://www.sec.gov/news/studies/2009/oig-509/exhibit-0104.pdf
One last example, from literally hundreds the Coalition could use, is the Global links cover up by the SEC. It is linked directly to CMKM as at least one of the perpetrators in this case was a perpetrator in CMKM’s case. The connection is also evident in the fact that it is the SEC’s modus operandi to go after the victim company, as they did in CMKM’s case, EagleTech’s case, and in the cases of thousands of other victim companies who got their companies de-registered by the SEC. David Patch’s Freedom of Information Act data is in the sanity check link below:
According to Mark Faulk, CEO of CMKM Diamonds at the time:
“Now, Dave Patch has received, through the Freedom of Information Act, SEC records confirming that over ten million counterfeit shares of Global Links stock were dumped into the market immediately after the company did a reverse split and reduced the total share count to just over one million real bshares. The brokers sold millions upon millions of fake shares, and the SEC covered it up.
“The SEC knew, they were fully aware of the Global Links situation, and they covered it up. In fact, while they allowed brokers to sell millions upon millions of counterfeit shares,they were busy investigating Global links-trying to discredit the company itself�
http://www.faulkingtruth.com/Articles/Commentary/1064.html
Per Bob O’Brien: “The SEC ignored Bennett’s instruction to Donaldson to look into Global Links and figure out what was going on. We could just pretend that it wasn’t being discussed for many months afterthat Senate Banking Committee hearing…Demand a special prosecutor, now. Enough is enough. “The evidence is clear on this one, and presidents have seen impeachment headlines over far less. If the SEC is violating its mandate to act in the public interest and protect investors to this degree, it deserves to be dismantled, and the Justice Department brought in to put the cuffs on those responsible.�
http://www.thesanitycheck.com/Portals/0/Patch.pdf
In conclusion, the Coalition respectfully requests that the court grant it relief in filing an administrative claim to the SEC and further requests that the court immediately take
jurisdiction of said case to ensure that future damages are mitigated. Moreover, the Coalition respectfully requests that the court take emergency action to prevent future losses by
individual investors who are the unwitting victims of worldwide illegal naked short selling.
Progress Update: The Cabal’s World Is Falling Apart; Obama and Geithner Breach of Duty on the Global Settlements; Bush, Sr., Clintons & Bush, Jr. Secret Closed Files Under Heavy Review.
We are finding that being the lead in any effort is difficult but if you are truthful, fair and balanced in your reporting then over time, people listen, investigate, evaluate and respond. This has been a long drawn out journey for the White Hats but thankfully what we have been stating for months has intertwined with other domestic and international news and activities. Being in the lead position also creates opportunity to push the agendas, reopen closed, long forgotten files and to welcome new members to the White Hats community … yes, we have grown into a community. Our people, from the lowest level to the highest level, both domestic and international, have discovered that what we have stated from the beginning is absolutely true. Some knew we were correct in our thinking, others not so sure, but what they all know now is that we have a common cause and fight.
We know about the Bush family, the Clintons and now Obama trying to usher in and implement the New World Order (NWO). Many say this is not news and others are thankful that we are facing it head on. But why hasn’t the public at large heard about it? The answer is simple; total, complete and unimpeded control of the media. It has been their unequivocal arrogance and their unrelenting harassment of what they perceive as “the little people� . People they thought did not have the ability to do anything to curtail their plans … people they never thought in their wildest dreams would have ever had the ability to disseminate a concept and speak to the issues with such exacting measure that other of the world leaders have committed their beliefs and resources to taking down this administration and all it stands for which includes the finest Puppet Master ever known to man – George Bush, Sr. As we have learned from our past mistakes, history does repeat itself; it is sad to admit that most of us were sleeping at the wheel and were taken on the proverbial ride on this one. When the ride stopped, we never thought we’d find the villains in America under American leadership.
Now, the tide is turning in America and along with the support of the International Community, the heat is being turned up on these individuals. From our standpoint it is easy to say that we are closing them down but we still have prominent individuals … like current Presidential Candidate Mitt Romney and Texas Lt. Governor David Dewhurst … that have participated in the theft of large amounts of investor monies and the cover-up that surround it. We also have Presidential Appointees that hope they will never be exposed for their past actions regardless if it was due to political pressure or other reason … to us it doesn’t matter. If they weren’t strong enough to stand up to the pressure in the past, then they are not strong enough to stand up to the pressure in the present. If they were dirty in the past, then they will be prone to corruption in the future. It’s difficult to believe these people have been elected to office to represent the people. They have failed us, they have lied to us, they have tried to circumvent us and they have held the American citizens, “We The People� , hostage to their own empire building schemes, bribery and corruption rackets.
But there is an awakening, a light beaming into the dark closets of the past and present. As we speak, the past is catching up to the Bush family and both Clintons. Many files that have been “officially closed� are now being “officially opened� to be reviewed one more time. Files like the Vince Foster death, the Ron Brown death, the Noriega files … even the Prescott Bush files … everything is being opened up to look for the patterns and the depth of the intended NWO takeover.
Why all of the sudden is the world interested in these files? Well, as you move through your daily existence it is difficult to see someone else’s short term goals and ultimate long term goals as they are developing. After a long string of events, especially over 50 years of political actions, it is easy to see how a plan takes shape. In the same ilk, now that we are here with the past seemingly forgotten, the shame is starting to come upon us … as a people. Embarrassingly, we have left our guard down and we have forgotten.
There are many issues that for the sake of our country will not be disclosed but are currently under review by the people on the inside, some things are better left unsaid, but for all of us in the inner circle worldwide the patterns of activities need to be reviewed … we, as professionals, have been purposely led astray and lied to in our duties to serve and protect. Now, we are doing the clean up and will not quit until justice prevails. As the saying goes “The Jig is Up!� . Now, all of our former leaders are the targets of the investigations. They should be feeling the heat of the fire as we speak … the empire is burning and will never have the opportunity to reconstruct itself … so help us God!
GERMANY REACTS – BILDERBERG’S MOVE TO PROTECT THEIR OWN.
In that light, in Germany, Saturday, July 1st at 1am est, the strongest public indictment of the Cabal has been issued. This includes our current Administration, the Bushes, the Clintons, Greenspan, Geithner, Goldman Sachs, Josef Ackermann, and all of the minions including those currently controlling and sitting as members of the Bilderbergs and other elitist families and groups. This release has already grown long legs and is getting quite the force of speed behind it in the international community. But did anyone notice our very own media outlets, and the international media oultets after initially reporting, they were forced to drop it. Why? The Answer: The Bilderberg Society has come to the aid of the group. This information is very explosive and control from the group to containerize it was required before it got out of control. Expect much more on this.
BUSH’S POWER-BASE CRUMBLING
With their power base crumbling around them, the following additional activities have occurred and are currently under continuing investigation. It’s no wonder why Geithner is so damn desperate to leave. Here’s why!
A) Despite the US Treasury assuring multiple Global Trust Paymasters of their long overdue payments last week, the payments again failed to materialize. Bush Sr, again ordered, his boys, Obama and Geithner to block any and all payments.
B) Although Bush, Sr. and Obama were able to prevent the release of the payments, a tremendous amount of progress has been made to further expose, prevent and halt their activities.
* On June 24th, Geithner made an illegal play to divert part of the Global Settlement funds to Josef Ackerman, Chairman of Deutsche Bank, with the plan of working the funds through the middle of July. Fortunately, the evening of June 24th a plane left the US travelling directly to visit Ackerman, with special enforcement personal from the group responsible for getting the Global Settlements completed. Ackerman’s Plan was stopped. Upon their return from Germany, Geithner was visited by the same enforcement personal and, will again, if he continues to be a problem.
* By June 29th, it became public that Geithner is planning on resigning.
* On July 1st, Geithner was also contacted about the 700 Million Dollars he moved from his personal account in The Vatican Bank to other accounts, at many banks around the globe. Did Geithner actually think we wouldn’t know his movements with the cash? Does he really think we will allow him to keep that money and the other funds he has participated in stealing? This is not a reality.
* It has been determined that Congress does not have the guts to investigate all of the claims that have been put forth to them. We know in several instances that certain of the names on the list of Vatican Bank account holders and presumed pay-off recipients are the reason. Every one of the Congressional Leaders including Issa has the knowledge in front of them. Hemming and hawwing … claiming to not want to rock the very delicate boat the United States is in at this time. We say bullshit … the problem we are in is solely due to the garbage that is happening behind the scenes and not one of our senior leaders has the fortitude to confront the monsters that are dealing with head on.
MESSAGE TO GEITHNER
Mr. Secretary, you have proven to be incompetent and a total failure, but Obama needs you as an expendable scapegoat … you know the language, “to protect the Office of the President of the United States at all costs� . You don’t think they will let you resign do you? When you left the Treasury building on Friday and you shook everyone’s hands telling them you are gone {for good}, did you think the holiday weekend would be easy? You got hammered by the Administration begging you to stay by subtleties of the persuasion. It’s a very difficult spot. Putting you squarely in the hot seat.
Mr. Secretary, you have been well paid to strategically perform these criminal actions and to ruthlessly take all the heat, in the beginning, fronting for Alan Greenspan at the Federal Reserve Bank of New York, and then the US Treasury. You have been a good soldier but even you are not important enough to protect as a valuable asset, i.e. any of the Bush family members.
Mr. Secretary, the pressure is mounting and you can watch for yourself. In the last week, some old files are re-emerging on the international stage, i.e. the Vince Foster and Ron Brown cases. Both were in high level positions, but at some point they apparently needed to be dealt with. Why? At that point in time the issue was simple … a man, his oral fixation, a cigar, an intern and a dress.
In a significant move, court documents have been unsealed by a Special Division of the United States Court of Appeals, which will prove the FBI and OIC covered-up in the Independent Counsel’s probe into the Death of Deputy White House Counsel Vincent W. Foster, and it further exposes the criminal activities of past and present White House Administrations. If it can happen to them, it can easily happen to you. This time there is far more at stake, and do you really think they will allow you to just walk away when you know all the secrets?
You know that you have stolen for your Masters, from multiple nations to vast amounts of Investor funds, which have all been recorded. Are you really thinking you can escape justice and America will let you spend one dollar of the funds you were paid to perform these illegal activities? Your only option to lesson your punishment will be if you make a deal immediately, which we encourage you to do.
FALCONE’S LEGAL PROCESS STARTING; THE BEGINNING OF THE END.
On June 22nd, a Writ was delivered to Phillip Rivett, Senior Statutory Auditor of Price Waterhouse Coopers LLP, London, who was officially put on notice as Auditors for Barclays Bank of illegal trade activity utilizing Mr. Falcone’s investment funds on buy/sell programs that created billions of dollars for certain government officials, including key officials of Deutsche Bank and for special accounts held by the CIA at Barclays Bank. This litigation will materially impact Price Waterhouse Coopers LLP, Barclays Bank and Deutsch Bank. The lead attorney firm on record for Mr. Falcone is Fuerst Ittleman of Miami, Florida.
In addition, the litigation has already created panic with KPMG, the lead international accounting firm. We know that between the two firms each has expended significant amounts of time, energy and resources in the attempt to get their hands around the problem and the culprits. The culprits answer to the accounting firms is “We’ll take care of it� . Maybe in the past that would be a solid assurance but not currently. The world is falling apart and we are just waiting for either of these firms to believe that this is going away. You, Mr. Secretary, are the titular head of all of this … you have the keys to the NWO’s Pandora’s Box.
This criminal audit trail, from Josef Ackermann to the Bushes, Biden, Herzog, Clinton, Romney and Geithner, is in the hands of a number of Law Firms, proceeding through Global Regulatory Legal actions including criminal investigations. Records have been filed with trustworthy Global Enforcement Agencies such as the FSA (Financial Service Association). China and the EU countries are all working together and have the full sordid unsavoury details of these betrayals. Bank Accounts from the Caribbean to the EU are all traced and records are on file for the courts. More Bank Officers are ready to attest when subpoenaed.
Mr. Secretary, do you think they care about the NWO? Not the smart ones. If you are worried about whether you are going to make it through all of this, you need to stop, talk to your attorneys, cut a deal and remove yourself from your post.
The Department of Treasury will survive without you, the Country will survive without you and the international community will survive without you. Obama and the others will be concerned but they will appoint someone else to be their puppet. If you want to lessen the damage to yourself and your family, you might consider turning into a White Hat and reverse all of the damage you have participated in and have knowledge of. It won’t be easy, but it will be easier for you. You will need to turn on your former employers. Yes, they have had their moment of power but right now, we are powerful as well. What side of the world do you wish to play on? Do you want to play on the side of the people, like where you started, or do you wish to be one of the extinguished one thousand points of light? They are not in control any longer. Their very foundation is deteriorating with all of the problems they’ve created and cannot stay in control of any longer. We know that much has been kept from you, you’re just another pawn in the big game and your whole side is experiencing checkmate. Just come clean before we take more actions like the ones that have hit your doorstep and the ones that you have personal knowledge of that are about to hit your doorstep. You know how to reach out to us. We promise to be there.
You might want to make up your mind soon as you are fast becoming a liability to your Masters. You are expendable and not in a position of trust, but you already know this. You know they will do anything to stay alive … like a rat backed into a corner. So, realistically, we might be the best chance for survival, either literal or political or figuratively. Just think about it. Make the call.
WHERE ARE OUR TESTED AND PROVEN LEADERS?
What we want to know is what the two lone wild cards will do?
General Petraeus, are you willing to go along with this duplicitous conspiracy once appointed to the CIA or will you stand up and make the people that believed in your moral fiber so strongly that they gave you the support you needed to make the Academy? They and the world need you now … not later.
General Colin Powell (Ret.), we ask of you the same. We need your specific leadership. In a meeting, you once stated that you would never allow your name to be placed in the presidential hat, “If the Trust is still in control.� Sir, this is the time we need you, your strength and your faith in America. We know your idealism has been challenged, your duty to your Country has been lessened by others and we know that you are mad as hell. Help us take control … don’t hide in a fox hole while these men you were formerly employed by attempt to take control of the world. Help us take the ground back that is America instead of what the elitists are attempting to do.
Regardless of the trajectory of the political planets we need strength to lead us through the difficult times ahead of us in the short term and the long term. The world will need strong men of valor, not conniving snakes that will grasp on to the opportunities that will benefit them alone. You are highly respected men that led fellow Americans into war … you have the strength to lead the world through the coming tough times. Our current leaders do not have the ability, nor have they shown they can accept the responsibility of their positions. It’s time to step forward and be counted before it’s too late. For God and Country … and now, the people of the World.
Posted by The White Hat Reporters
Johhnyic was here…
IN THE UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
David Anderson, Lt. Col; Nelson L. No. 11-55169
Reynolds, Lt. Col; Sheila Morris;
Robert Hollenegg; Reece Hamilton (U.S. District Court No. 8:10-cv-00031-
individually and on behalf of all JVS-MLG)
similarly situated,
Plaintiffs/Appellants,
vs.
Christopher Cox; Mary L. Schapiro; Cynthia A. Glassman; Paul S. Atkins; Roel C. Campos; Annette L. Nazareth; Troy A. Paredes; Luis A. Aguilar; Elisse B. Walter; Kathleen L. Casey,
Defendants-Appellees.
APPELLANTS’ MOTION FOR EXTENSION OF TIME TO FILE OPENING BRIEF
On Appeal from the United States District Court For the Central District of California
The Honorable James V. Selna
A. Clifton Hodges, State Bar #046803
Hodges and Associates
4 East Holly Street, Suite 202
Pasadena, California 91103-3900
Telephone: (626) 564-9797
Facsimile: (626)564-9111
Email: al@hodgesandassociates.com
Attorney for Plaintiffs-Appellants David Anderson, Lt. Col, et al.,
91H CIR. R. 27-3 CERTIFICATE
1. Telephone numbers and office addresses of the attorneys for the
parties.
Attorney for Plaintiffs-Appellants David Anderson, Lt. Col, et al.,
A. Clifton Hodges
Hodges and Associates
4 East Holly Street, Suite 202
Pasadena, California 91103-3900
Telephone: (626) 564-9797; Facsimile: (626) 564-9111
Email: al@hodgesandassociates.com
Attorneys for Defendants-Appellees Christopher Cox, et al.,
Andre Birotte Jr.
United States Attorney
Leon W. Weidman
Assistant United States Attorney
Civil Division
Keith M. Staub
Assistant United States Attorney Room 7516 Federal Building 300 North Los Angeles Street Los Angeles, California 90012
Telephone: (213) 894-7423; Facsimile: (213) 894-7819 Email: keith.staub@usdoj.gov
2. Facts showing the existence and nature of the requested
extension of time to file opening brief.
This is an appeal from an Order of the United States District Court, Central District of California, Southern Division (Selna, J.), granting
Defendants’ FRCP 12(b) Motion to Dismiss (Minute Order dated June 6, 2010) and dismissing Plaintiffs First Amended Complaint with prejudice, by Order of Dismissal dated December 29, 2010.
The present Bivens action arises out of the sale of stock from CMKM Diamonds, Inc. (“CMKM”), to Plaintiffs, the corporation’s subsequent implementation of its resolution to self-liquidate, and the involvement of the Securities and Exchange Commission (“SEC”) in that process. Plaintiffs brought this action against a number of former and present SEC Chairpersons and Commissioners, who refuse to authorize release of the compensation funds under their custody and/or control, which monies result and accrue directly from a clandestine government “sting” operation.
Plaintiffs have asserted claims for declaratory judgment and deprivation of their Fifth Amendment Rights under the Takings Clause and the Due Process Clause of the U.S. Constitution. While this cause was filed as a probable class action, no putative class has yet been certified given the early and unexpected dismissal of Plaintiffs’ case by the court below.
In the present appeal, Appellants contend, that: (i) the shareholders of the winding-up CMKM corporation have a constitutionally protected property interest; and (ii) a meritorious and compensable claim for relief was properly plead and stated by Plaintiffs in their Complaint.
Appellants’ opening brief was originally due to be filed by July 11, 2011. Appellants previously obtained from this Court, orally by telephone and received from the Clerk, upon a showing of good cause, a fourteen (14) day extension of the time to file Appellants’ opening brief, pursuant to 9th Cir. R. 31 -2.2., to July 25, 2011.
In this current motion before the Court, Appellants now request an additional time extension of thirty (30) days to file its opening brief, for a number of important, material and relevant reasons, including, without limitation:
(i) Appellants’ substantial need;
(ii) The likely event that the instant appeal will soon become moot;
(iii) The judicial economy and administrative convenience of the
Court,
(iv) To avoid the considerable, continuing expense and hardship to
both Appellants and Appellees in continuing to prosecute and defend this
appeal pending the expected, imminent resolution of the underlying claims,
thereby rendering this appeal moot; and
(v) The prior joinder in this Motion by the Appellees/Government
by stipulation and consent hereto.
In support of the above, Appellants attach to this Motion the Affidavit of counsel, A. Clifton Hodges, Esq., incorporated herein and made a part hereof.
3. Notification to counsel for other parties.
By telephone conference on July 20, 2011, counsel for Appellees-Defendants (AUSA, John Nordin) has agreed to join in and otherwise stipulate to this Motion.
CONCLUSION
For the foregoing reasons, Appellants, with the consent and stipulation of Appellees, respectfully ask this Court to enter an Order granting Appellants Motion For a thirty (30) day extension of time to file its opening brief and for such further relief as the Court may deem just and proper.
Dated: July 21, 2011. Respectfully submitted,
HODGES & ASSOCIATES
I si A. Clifton Hodges A. Clifton Hodges Attorney for Plaintiffs-Appellants, David Anderson, Lt. Col, et al.,
STATEMENT OF RELATED CASES
There are no related cases pending in this Court.
CERTIFICATE OF COMPLIANCE
I hereby certify that this Motion has been prepared using proportionately double-spaced 14 point Times New Roman typeface. According to the “Word Court” feature in my Microsoft Word for Windows software, this brief contains 965 words up to and including the signature lines that follow the briefs conclusion.
I declare under penalty of perjury that this Certificate of Compliance is true and correct and that this declaration was executed on July 21,2011.
CERTIFICATE OF SERVICE
I hereby certify that I electronically filed the foregoing with the Clerk of the Court of the United States Court of Appeals for the Ninth Circuit by using the appellate CM/ECF system on July 21, 2011.
I certify that all participants in the case are registered CM/ECF users and that service will be accomplished by the appellate CM/ECF system. Dated: July 21, 2011.
HODGES & ASSOCIATES
Isl A. Clifton Hodges A Clifton Hodges 4 East Holly Street, Suite 202 Pasadena, CA91103 Telephone: (626) 564-9797 Facsimile: (626)564-9111 Email: al@hodgesandassociates.com
……………………………………………….
Re: Hodges Files for an Extension
« Reply #1 Today at 6:37pm » [Quote]
SECOND FILING
IN THE UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
David Anderson, Lt. Col; Nelson L. No. 11-55169
Reynolds, Lt. Col; Sheila Morris;
Robert Hollenegg; Reece Hamilton (U.S. District Court No. 8:10-cv-00031-
individually and on behalf of all JVS-MLG)
similarly situated,
Plaintiffs/Appellants,
vs.
Christopher Cox; Mary L. Schapiro; Cynthia A. Glassman; Paul S. Atkins; Roel C. Campos; Annette L. Nazareth; Troy A. Paredes; Luis A. Aguilar; Elisse B. Walter; Kathleen L. Casey,
Defendants-Appellees.
AFFIDAVIT OF A. CLIFTON HODGES IN SUPPORT OF MOTION FOR EXTENSION OF TIME TO FILE OPENING BRIEF
On Appeal from the United States District Court For the Central District of California
The Honorable James V. Selna
A. Clifton Hodges, State Bar #046803
Hodges and Associates
4 East Holly Street, Suite 202
Pasadena, California 91103-3900
Telephone: (626) 564-9797
Facsimile: (626)564-9111
Email: al@hodgesandassociates.com
Attorney for Plaintiffs-Appellants David Anderson, Lt. Col, et al.,
AFFIDAVIT OF A. CLIFTON HODGES
I, A. CLIFTON HODGES, do hereby state and declare:
1. I am an attorney at law, duly licensed to practice before all
the courts of the State of California. I am the principal in the law firm of
Hodges and Associates, counsel of record for Plaintiffs-Appellants
David Anderson, Lt. Col, et al., Case No. 11-55169. I am familiar with
the facts and circumstances respecting the matters herein addressed by
me; and have personal knowledge of the same, unless otherwise
indicated in this Affidavit.
2. I submit this Affidavit in support of Plaintiffs’-Appellants’ Motion For Extension of Time To File Opening Brief, of even date herewith, attached hereto and made a part hereof.
3. Appellants’ opening brief is currently due on or before July 25, 2011, pursuant to having received a (14) day extension of the time to file its opening brief, pursuant to 9 Cir. R. 31-2.2. In its concurrent motion to this Court, Appellants ask for an additional time extension of thirty (30) days to file its opening brief.
4. Upon information and belief, after careful inquiry and upon such further investigation as I have, in my opinion, deemed necessary and appropriate, taking into consideration all relevant facts and circumstances available to me, I have concluded as follows:
(i) Appellants have good cause and substantial need for this thirty (30) day extension of time, since within just the past hours, I have learned that there is a substantial and serious likelihood that sustained and comprehensive official efforts to settle and conclude this matter are now underway, and the substantive elements thereof would provide to Appellants-Plaintiffs the compensation and relief requested in their Complaint. Given the very recent and unanticipated appearance to me of this information, it would be impossible for Appellants to have exercised a more timely due diligence by moving this Court for an extension of time seven (7) days before July 25, 2011, as contemplated by 9th Cir. R. 31-2.2(b). Likewise, this request for an extension of time to file a brief is an application for procedural relief, and is not therefore a matter contemplated by 9th Cir. R. 27-3 (and Circuit Advisory Committee Note to 27-3(3).
(ii) Accordingly, the information described above, gathered by or
through me, or presented to me by persons within the scope of protected,
professional privilege, and work product confidentiality, my resulting
conclusions, taken to their logical and legal conclusion, strongly indicate and
make it much more likely than not, that the instant appeal will soon become
moot.
(iii) Continuing this case for thirty (30) days, and extending
Appellants’ deadline to file its opening brief accordingly, would be well
within the parameters of the stated rules of this Court, and an appropriate
exercise of the Court’s discretion inherent in deciding procedural matters
such as this.
(iv) Appellants’ motion would likewise serve to lessen the
unnecessary, yet considerable expense and hardship attendant to all parties if
required to continue this appeal even though there is now pending an
expected, imminent settlement of this case; and
(v) Appellant and Appellee are both in accord and have stipulated
and agreed to join in this motion, thereby asking the Court to agree with
the litigants and treat this matter as consensual, routine and appropriate. By
telephone conference late in the afternoon of July 20, 2011, counsel for
Appellees-Defendants (AUSA, John Nordin, Esq.) have agreed to join in
and otherwise stipulate to Appellants’ Motion.
I declare under penalty of perjury that the foregoing is true and correct.
Executed this 21st day of July, 2011, at Pasadena, California,
/s/ A. Clifton Hodges A. Clifton Hodges
CERTIFICATE OF SERVICE
I hereby certify that I electronically filed the foregoing with the Clerk of the Court of the United States Court of Appeals for the Ninth Circuit by using the appellate CM/ECF system on July 21,2011.
I certify that all participants in the case are registered CM/ECF users and that service will be accomplished by the appellate CM/ECF system. Dated: July 21, 2011.
HODGES & ASSOCIATES
/s/ A. Clifton Hodges A Clifton Hodges 4 East Holly Street, Suite 202 Pasadena, CA91103 Telephone: (626) 564-9797 Facsimile: (626)564-9111 Email: al@hodgesandassociates.com
The accusations and evidence presented in this letter are quite damning regarding the SEC’s apparent policy of covering up the crimes of market makers or broker/dealers in short selling and the selling of unregistered securities. Anyway, here’s the letter:
My sincere hope is that the SEC’s Complaint and DOJ’s indictment will eventually include the broker/ dealers who helped the Defendant’s sell their shares. I’m obviously not a securities lawyer; but, here is my reasoning:
Referencing the SEC’s original Complaint (Case 2:08-cv-00437, dated 04/07/2008) and the DOJ’s recent indictment (Case 2:09-cr-00132-RJJ):
• The SEC and DOJ claim John Edwards and the other Defendants sold 425.29 Billion unregistered shares.
• The DOJ’s indictment claims that John Edwards sold his shares at an average price per share of $.00021. (Document 7, Page 23, DOJ Indictment)
• But, the DOJ’s indictment, document 7, page 7 & 25, also claims the “average” share price to the final investor was $.00071.
• This means that someone else was pocketing the share price difference of $.00071 – $.00021 = $0.0005, as their profit, on average, for every share the Defendant’s sold.
• 425.29 Billion Shares, at an average sales price of .00071 per share, means the expected total shareholder losses should have been $301,955,900 ($301 million), not the $60 million as noted in the SEC’s Complaint and the DOJ’s indictment.
• $0.0005 times 425 billion shares means someone else, not John Edwards and the Defendants, pocketed the $212,500,000 ($212.5 Million) difference.
• Neither the SEC nor the DOJ talk about how the Defendants’ CMKX shares made it into the OTCBB/ NSCC’s electronic trading systems, let alone be available for the participating brokerage firms, such as Ameritrade and eTrade, to facilitate the selling of the 425 Billion unregistered CKMX Securities.
• According to the Stockpatrol.com article, dated June 25, 2004, no brokerage firm had ever filed a Form 211, registering as a Market Maker for CMKM Diamonds. http://www.stockpatrol.com/article/key/cmkm
• In accordance with the OTCBB own rules: “Only Market Makers can apply to quote securities on the OTCBB� . http://www.otcbb.com/issuerinformation/issuerinfo.stm The same is true for quoting on the Pink Sheets. http://www.pinksheets.com/pink/otcguide/issuers_getquoted.jsp
• In order for CMKM Diamonds to legitimately issue and sell their shares via the OTCBB or Pink Sheets, one or more Brokers should have filed as the company’s official Market Maker(s)… if for no other reason than to sell the company’s own initial offerings.
• Moreover, without a registered Market Maker, there should be no way for an issuing company (in this case, CMKM Diamonds) to get their shares into the OTCBB or Pink Sheets Electronic OTC Markets in the first place.
In other words, with no Market Maker filing a Form 211, there never should have been any CMKM Diamonds (CMKX) shares trading via the OTCBB or Pink Sheets, ever!
That in itself should have been a huge Red Flag to the SEC… back when Billions of CMKX Shares were trading on a daily basis, if not before!
• Under Rule 15c2-11 — Initiation or Resumption of Quotations without Specified Information, General Rules and Regulations, promulgated under the Securities Exchange Act of 1934, it is illegal for a broker/ dealer to issue a quote without first researching the company and obtaining certain information, in order to prevent “fraudulent, deceptive or manipulative practices� . http://www.law.uc.edu/CCL/34ActRls/rule15c2-11.html http://www.gopublicusa.com/whatis15c211.html The beginning of the rules reads as follows:
o “As a means reasonably designed to prevent fraudulent, deceptive, or manipulative acts or practices, it shall be unlawful for a broker or dealer to publish any quotation for a security or, directly or indirectly, to submit any such quotation for publication, in any quotation medium (as defined in this section) unless such broker or dealer has in its records the documents and information required by this paragraph� … “and, based upon a review of the paragraph (a) information together with any other documents and information required by paragraph (b) of this section, has a reasonable basis under the circumstances for believing that the paragraph (a) information is accurate in all material respects, and that the sources of the paragraph (a) information are reliable.�
o In accordance with the above paragraph, the information the Broker/ Dealers are expected to obtain from the Securities Issuer/ Company includes:
A Prospectus specified by Section 10(a) of the Securities Act of 1933
A copy of the offering circular provided for under Regulation A under the Securities Act of 1933
A copy of the Company’s (issuer’s) most recent annual report filed pursuant to Section 13 or 15(d) of the Act
Company information that, since the beginning of its last fiscal year, the issuer has published pursuant to Rule 240.12g3-2(b)
16 additional items of information that further describe the nature of the issuer’s business, types of securities, business location and state of incorporation, their transfer agent, the name of the chief executive officer and members of the board of directors, and the relationship of the broker/ dealer to individuals affiliated with the company.
• As the SEC and DOJ have clearly stated, no such documentation from CMKM Diamonds existed! There was no way a market maker could have obtained this information.
• In my opinion, by not filing a Form 211, and registering as a market maker for CMKM Diamonds, brokers were trying to remove themselves from their fiduciary obligations under Rule15c2-11. (see explanation of rules: http://www.pinksheets.com/pink/otcguide/brokers_211.jsp)
• It’s very apparent to me that the 74 (plus?) brokers who made commissions selling CMKX securities (and outright profits from the price they paid the Defendants verses the price they sold to their clients?), did so by invoking the 211 Exceptions for facilitating Unsolicited Quotes.
• From a legal standpoint, the Brokers could claim this exemption only if they were fulfilling a specific client request. E.g. At least 425.29 Billion shares worth of individual client requests…
• Here copied below is an explanation of the Unsolicited Quotes Exemption from the Pink Sheets web site. http://www.pinksheets.com/pink/otcguide/brokers_index.jsp
Unsolicited Quotes
SEC Rule 15c2-11 provides an exemption to filing a Form 211 with FINRA for brokers that wish to publish an unsolicited quote. An unsolicited quote represents a customer order and not a market maker’s own position and must be removed from the system once the customer order is executed. Compliance with this rule is monitored by FINRA.
Federal securities laws require an issuer making a public offering of securities to file a registration statement with the Securities and Exchange Commission containing certain disclosures regarding the issuer and its securities. Pink OTC Markets has become increasingly concerned that the unsolicited quote exception in Exchange Act Rule 15c2-11 is being abused by unscrupulous individuals to engage in questionable and possibly fraudulent activities in violation of the federal securities laws. Pink OTC Markets, as a matter of policy, does not believe that the Unsolicited Quote Exemption should be used to circumvent FINRA’s 211 process. As a result, effective February 6, 2006, Pink OTC Markets is limiting the publication of unsolicited quotes to securities of seasoned issuers only. A seasoned security is generally defined as a security for which there has previously been a public market or a security of an issuer that has other seasoned securities.
Who, after reading this Pink Sheets comment, and considering the time line, doesn’t think CMKX played a significant role in this rule change? And yet, we didn’t see a complaint from the SEC until April of 2007, nor the indictment from the DOJ until just a few months ago.
Clearly, there were many opportunities – with at least 60 separate issuances, and plenty of evidence, for the Brokers and the SEC to put a stop to this nonsense, well before the end of 2005. Instead, they all chose to ignore the obvious. Without the Brokers’ help, John Edwards could not have gotten his shares into the OTC’s electronic trading systems… and there was too much of a financial upside for the Brokers to quit facilitating the sale of the obviously fraudulent shares.
With that in mind, I hope the reason this is considered a “Complex Case� , that will not go to court for another year – apparently, is that this case has to include the Brokers who were using fraudulent, deceptive and manipulative practices to deceive their clients on the true nature of CMKM Diamonds and the source of their CMKX securities!
So, in summary, I’ll say it again, I don’t think this case is so much about John Edwards and his Pump and Dump Scam, as it is about his enabling the Brokers to sell and make a much larger profit on selling unregistered securities on a massive scale… and then probably Naked Shorting on top of all that. So long as the SEC turned a blind eye, there was no down side for them.
As Deep Throat is alleged to have told Bob Woodward…”Follow the money”. In our case… which Brokers financially benefited from selling John Edwards’ shares??? Well, below is a list of brokers, dealers, and market makers that are known to have sold CMKX shares to their clients.
ADP, COSI, BROWN BROS, CITIGROUP, GMP SECS**, JAMESBLACK, MARSCO INV, NBC SEC., RAYMOND**, STERNE AG, ALPINE SEC, BROWN COLLC, CREST INTL, GOLDMAN, JEFFERIES, MERRIL, NFS LLC, RBC/DOMN**, SWISS AME, AMERITRADE, BUTLERWICK, DAVENPORT, GOLDMAN LP, JMS LLC, MERRIMACK, NRTHRN TR, RELIANCE, TD WATER**, ASSENT LLC, CAN DEP**, E*TRADE, GS I’NATL, JPMCBNA, ML SFKPG, PENSON FIN, RESEARCH**, UBS FINAN, BANC OF AM, CANACORD**, EDWARDS AG, H&R BLOCK, LAURENTI**, MLPCC/PAX1, PENSON**, SEI PRIVAT, UBS SECLLC, BANK OF NY, CIBCWRLD**, 0371 ELARKIN CO, HG WELLGTN, LEGENT LLC, MORGAN STN, PERSHING, SSB&T CO, US BANCORP, BEAR STERN, CITI/LMWW1, FIMAT PREF, HSBCSECS**, LPL CORP., MSDW INC., PIPER JAFF, SSB/FRANK, WACHTEL&CO, BNP PARIB, CITIBANK, FRST CLEAR, IBT/IN CUS, MAN SEC, N AMER COR, PRIMEVEST, STEPHENS WELLS LLC, WM FRANKEL, ZIV INVSMT.
The whole point of Rule 15c2-11, and the 1934 Securities and Exchange Act in general, was to provide transparency to prevent this type of fraud… yet, these brokers, dealers, and market makers, knowingly or unknowingly, played a major role, and managed to help facilitate the CMKX fraud on the grandest of scales! They did so by not performing their due diligence under Rule 15c2-11, and instead falsely applying the Unsolicited Quotes Exemption… knowing full well that they could not have legally sold CMKX securities by following the requirements of Rule 15c2-11.
This case should not be treated trivially… Is there any other documented case of a company having sold 425.29 Billion unregistered shares into the securities market, through at least 60 separate illegal issuances, without the assistance of a registered Market Maker, and still manage to sell the shares via a legitimate US Based electronic securities trading exchange????
Now, let’s talk about Naked Short Selling for a moment. I’ve mentioned in virtually every email I have sent that the current CMKM Diamond’s Management Team has commented, on more than one occasion, and as recently as this year, that CMKX Securities were also Naked Short Sold (NSS) at significant levels. They have also asked the SEC to force the broker/ dealers to open their books so that can be confirmed. To the best of our knowledge, that has never happened. Let me try to make the case why the SEC and DOJ should force the above brokers to open their books.
Starting in 2003, the management team of CMKM Diamonds tried to make a case that CMKX Securities were being Naked Short Sold. The SEC argues that this was a strategy by Urban Casavant and John Edwards to keep the heat off of their own Pump and Dump activities. Perhaps that is true. But, that doesn’t also mean Naked Short Selling didn’t occur. In fact, once the brokers, dealers, hedge funds and others realized this was a company that was set up to fail, those with less than stellar character would have also realized that there was little to no down side in naked short selling. E.g. selling additional CMKX Securities without first locating and either borrowing or buying CMKX Securities before selling them to their clients or buyers. Once the company was delisted or bankrupt, they would no longer be on the hook to cover.
Is there evidence to support this claim? I think there is.
First, CMKX Shareholders organized and formed a Task Force to oversee a Cert Pull, so that we could verify the legitimacy of the CMKX shares we were all holding. As the SEC very well knows, the DTCC ran out of certificates, and many brokers refused to deliver the paper securities. Some brokers even tried to eliminate their clients’ CMKX shares from out of their accounts. Moreover, most of the CMKX shares sold overseas were never counted. Still, the shareholder count managed to get to 622 Billion shares, before it was stopped. The SEC and DOJ have only accounted for 425.29 Billion unregistered shares. Without a registered market maker to sell the company’s legally issued shares, where did these other 197 Billion shares come from? (e.g. 622 Billion discovered via the Cert Pull minus 425 Billion illegally issued by the Defendants)
In addition, during the SEC’s hearings that resulted in the company being delisted, CMKM Diamonds’ current attorney, Bill Frizzell’s, had publicly stated that he thought 1.2 Trillion shares were illegally introduced into the market. In part, we were told the estimate was based on the short fall of CMKX Certs for investors during the cert pull, and the number of shareholders who did not participate in the cert pull. In addition, other CMKX Shareholders have noted that the Dividends originally given out for the CIM Stock, suggests the NSS number might be as high as 1.47 trillion CMKM Shares.
But, even without Frizzell’s or the CIM Dividend numbers, we still have the additional 197 Billion shares left unaccounted for. Perhaps that is the actual NSS number – or at least those that can be documented.
In that case, 622 Billion shares times an average pps of $.00071, means total shareholder losses would be $441,620,000 ($441 million)… of which $139,870,000 (~$140 Million) would be due to illegal Naked Short Selling (NSS), and the remaining $301,750,000 ($301 Million) from the sale of the Defendant’s unregistered shares.
Of course, we know the naked short number is higher than this, because not all CMKX Shareholders participated in the Cert Pull or were able to get their Certs from their brokers… especially overseas buyers.
That’s all I have for now. Once again, I sincerely hope the SEC and the DOJ will address these concerns in their upcoming complaints, indictments and court cases, and bring a case against the brokers who made a market in CMKX Securities, and illegally profited at shareholder expense, in violation of the real intent of Rule 15c2-11, or any other relevant securities violations.
AH: Having said that, let me refer you to the second issue raised by the government first. It asks the question whether or not there are property rights at issue in this case. And very simply what we have alleged is , let me back up a second. We have alleged a scheme, in effect a sting operation, judged from the outside not from the inside. Basically the sting operation was an operation put into effect through the Office of Homeland Security, the Department of Justice, and the SEC Commissioners.
What we have alleged is that the SEC Commissioners as opposed to the Agency itself, coordinated with these other institutions and at their request and in concert with them began a program, whereby, this company was raided. The SEC Commission was fully aware, at all times, of the amount of naked shorting going on in this company.
The then Chairman of the commission has been quoted on several occasions as saying this was the most heavily naked shorted company in the history of the world. As we have alleged in our complaint one day, which I believe was in April 2005, some more than 90 billion shares of this company were traded in one day. I have testimony from, which is not alluded to in our current complaint, but I can provide testimony from registered NSASDA companies, that were in business at this time, who report that they were told ‘it’s free money’. You can sell as many shares as you can find buyers for and put all of the money in your pocket. You don’t ever have to buy the share.
They were on a no borrow list to begin with, at that point in time, which was in 2005 primarily. And if you were going to borrow shares as a legitimate broker in that point in time, they had a $2.50 requirement for borrowing. You can imagine with some, I think they averaged during that time 17 billion shares a day being sold, this is an enormous amount of money for people to be borrowing shares to be sold into the market. They were being sold for nothing, that is how they drove this company into the ground.
They did it because there was evidence by the government, and by others, associated both directly and indirectly with the government, that this money was being sent offshore. It was being accumulated by hedge funds offshore, it was being sent to Iraq, it was being sent to Iran, it was being sent to Afghanistan, it was being sent to Hezbollah, this was one of the means in which these terrorist organizations were utilizing them to fund their operations.
What is most interesting about this statement is that long before this terrorist used the market as we have shown, then at 9-11 they shorted the market, then in cmkx the terrorists continued to short the market with their shares all being grandfathered, but then after this those same terrorists melted the market and as we see the federal reserve bailed out the fraud to the tune of 16 trillion. All companies listed the largest rico fraud cases in history were given trilions and trillions of dollars to cover up the largest crime in history.
Not hard to prove m.o. in this case that is for sure.
Gusjavis
thanks fred
SECURITIES AND EXCHANGE COMMISSION v. CMKM DIAMONDS, INC.
SECURITIES AND EXCHANGE COMMISSION, Plaintiff,
v.
CMKM DIAMONDS, INC., et al., Defendants.
No. 2:08-cv-0437-LRH-RJJ.
United States District Court, D. Nevada.
July 25, 2011.
ORDER
LARRY R. HICKS, District Judge.
Before the court is plaintiff Securities and Exchange Commission’s (“SEC”) motion for summary judgment against remaining defendants Global Stock Transfer, LLC (“Global Stock”); Helen Bagley (“Bagley”); Sergey Rumyantsev (“Rumyantsev”); and Brian Dvorak (“Dvorak”). Doc. #161.1
I. Facts and Background
This action involves the sale of unregistered securities. Defendant CMKM Diamonds, Inc. (“CMKM”), a Nevada corporation, concocted and carried out a complex scheme to illegally issue and sell billions of shares of its stock in several unregistered distributions between December 2002, and September 2004.
On April 7, 2008, the SEC initiated the present civil action against defendants for violation of the Securities Act of 1933 (“the Securities Act”), 15 U.S.C. § 77(e). Doc. #1. Thereafter, the SEC filed the present motion for summary judgment against defendants Dvorak, Rumyantsev, Global Stock, and Bagley.2 Doc. #161.
II. Legal Standard
A. Summary Judgment
Summary judgment is appropriate only when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(c). In assessing a motion for summary judgment, the evidence, together with all inferences that can reasonably be drawn therefrom, must be read in the light most favorable to the party opposing the motion. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986); County of Tuolumne v. Sonora Cmty. Hosp., 236 F.3d 1148, 1154 (9th Cir. 2001).
The moving party bears the burden of informing the court of the basis for its motion, along with evidence showing the absence of any genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). On those issues for which it bears the burden of proof, the moving party must make a showing that is “sufficient for the court to hold that no reasonable trier of fact could find other than for the moving party.” Calderone v. United States, 799 F.2d 254, 259 (6th Cir. 1986); see also Idema v. Dreamworks, Inc., 162 F.Supp.2d 1129, 1141 (C.D. Cal. 2001).
To successfully rebut a motion for summary judgment, the non-moving party must point to facts supported by the record which demonstrate a genuine issue of material fact. Reese v. Jefferson Sch. Dist. No. 14J, 208 F.3d 736 (9th Cir. 2000). A “material fact” is a fact “that might affect the outcome of the suit under the governing law.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). Where reasonable minds could differ on the material facts at issue, summary judgment is not appropriate. See v. Durang, 711 F.2d 141, 143 (9th Cir. 1983). A dispute regarding a material fact is considered genuine “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Liberty Lobby, 477 U.S. at 248. The mere existence of a scintilla of evidence in support of the plaintiff’s position will be insufficient to establish a genuine dispute; there must be evidence on which the jury could reasonably find for the plaintiff. See id. at 252.
B. Section 5 of the Securities Act
Sections 5(a) and (c) of the Securities Act make it unlawful to offer or sell a security in interstate commerce if a registration statement3 has not been filed as to that security, unless the transaction qualifies as exempt from registration. 15 U.S.C. §§ 77c(a) and (c); SEC v. Platforms Wireless Int’l Corp., 617 F.3d 1072, 1085 (9th Cir. 2010). The definition of a security under the act includes a company’s stock. 15 U.S.C. § 77b(a)(1).
To establish a violation of Section 5 of the Securities Act, the SEC must establish that: (1) there was not a registration statement in effect as to the underlying securities; (2) the defendants directly or indirectly sold or offered to sell the securities; and (3) the sale or offer was made through interstate commerce or the mails. SEC v. Phan, 500 F.3d 895, 902 (9th Cir. 2007) (citing Berckeley Inv. Group, Ltd. v. Colkitt, 455 F.3d 195, 212 (3d. Cir. 2006). “Once the SEC introduces evidence that a defendant has violated the registration provisions, the defendant then has the burden of proof in showing entitlement to an exemption.” Platforms Wireless Int’l Corp., 617 F.3d at 1086.
Despite the term “sell,” liability under Section 5 is not confined to the person who passes title of the security; a participant in the distribution of unregistered securities may also be liable under Section 5. SEC v. Murphy, 626 F.2d 633, 649 (9th Cir. 1980). For a defendant to be liable for “indirectly” offering to sell securities in violation of Section 5, their role in the transaction must be a significant one. Phan, 500 F.3d at 906. A significant role includes a defendant who was both a “necessary participant” and a “substantial factor” in the transaction. Id. (citing Murhpy, 626 F.2d at 648, 652); SEC v. Rogers, 790 F.2d 1450, 1456 (9th Cir. 1986).
A defendant is a necessary participant if “but for” his participation in the distribution of unregistered securities, there would not have not been any sale. Murphy, 626 F.2d at 650-51. Further, a defendant is a substantial factor in the distribution of unregistered securities if his overall conduct and participation is not “de minimis.” Rogers, 790 F.2d at 1456 (citing Murphy, 626 F.2d at 650-52).
III. Discussion
In its motion for summary judgment, the SEC argues that the remaining defendants were both necessary participants and a substantial factor in the unregistered distribution of CMKM stock, and therefore, are liable for violating Sections 5(a) and (c) of the Securities Act.4 Doc. #161. The court shall address the SEC’s arguments as to each remaining defendant below.
A. Brian Dvorak
Defendant Dovrak, an attorney retained by defendant CMKM, wrote approximately 440 opinion letters to stock transfer agents justifying the issuance of unrestricted CMKM stock by falsely claiming that the stocks were subject to a statutory exemption.
The court has reviewed the documents and pleadings on file in this matter and finds that Dvorak was both a necessary participant and a substantial factor in the sale of unrestricted CMKM stock in violation of Section 5 of the Securities Act. First, but for Dvorak’s participation with CMKM, there would not have been a sale of unregistered securities. His letters enabled the removal of the restrictive legends which allowed them to be sold by defendant broker NevWest Securities, Inc. (“NevWest”). Second, the writing of opinion letters justifying the removal of the restrictive legends is not a de minimis act: Dvorak’s participation was a crucial and integral role in the overall scheme to sell unregistered securities. See e.g., Geiger v. SEC, 363 F.3d 481, 487 (D.C. Cir. 2004) (holding that an attorney who writes unfounded opinion letters about registration exemptions which allow for the sale of unregistered securities is both a necessary participant and a substantial factor in any unlawful sale). Therefore, the court finds that the SEC is entitled to summary judgment against defendant Dvorak.
B. Global Stock and Helen Bagley
Defendant Global Stock is a Nevada corporation that operated as a transfer agent for CMKM’s stock transactions. Defendant Bagley is the principal of Global Stock and was the individual who removed the restrictive legends from CMKM’s stock certificates for at least 270 billion shares of CMKM stock.
The court has reviewed the documents and pleadings on file in this matter and finds that Global Stock and Bagley were both necessary participants and substantial factors in the sale of unrestricted CMKM stock in violation Section 5 of the Securities Act. First, but for their participation in removing the restrictive legends, there would not have been a sale of unregistered securities because the CMKM stock would still have the restrictive legend on each certificate. Second, defendants participation was not de minimis. Global Stock and Bagley issued billions of shares of CMKM stock without the restrictive legend and then transferred those unrestricted certificates to defendant NevWest for the purpose of sale to the general public.
In their opposition, Global Stock and Bagley argue that there is a disputed issue of material fact as to whether they had known or had a reason to know that an illegal distribution of the stock would occur, thereby precluding summary judgment. However, Section 5 of the Securities Act is a strict liability statute. See e.g., SEC v. Ramoil Mgmt., Ltd., 2007 U.S. Dist. LEXIS 79581, *27-30 (S.D. N.Y. 2007); SEC v. Levine, 2010 U.S. Dist. LEXIS 77937, *3 (D. Nev. 2010) (“The plain language of the statute has no scienter requirement.”) (citing SEC v. Alpha Telecom, Inc., 187 F.Supp.2d 1250, 1258 (D. Or. 2002) (“There is no scienter requirement under Section 5.”)). As such, the SEC is not required to establish scienter on the part of a defendant in connection with the sale of unregistered securities. Phan, 500 F.3d at 906.
Additionally, Global Stock and Bagley argue that they relied on the representations of counsel, namely defendant Dvorak, in removing the restrictive legends from the CMKM stock, and therefore, they cannot be liable for any violation of the Securities Act. To establish the defense for good faith reliance on the advice of counsel, a defendant must show that they: “(1) made a complete disclosure to counsel; (2) requested counsel’s advice as to the legality of the contemplated action; (3) received advice that it was legal; and (4) relied in good faith on that advice.” SEC v. Savoy Industries, Inc., 665 F.2d 1310, 1314 n.28 (D.C. Cir. 1981). Further, the defendant has the burden of establishing each element of a reliance on counsel defense. SEC v. Goldfield Mines Co. of Nevada, 758 F.2d 459, 467 (9th Cir. 1985).
Here, the court finds that defendants Global Stock and Bagley have failed to meet their burden establishing a good faith reliance on the advice of counsel. Although defendants claim that they did not remove a single restrictive legend from CMKM stock without receiving a supporting opinion letter from counsel, the evidence before the court establishes that defendants believed that Dvorak’s opinion letters were not supported by the law and requested CMKM to find another attorney to the write opinion letters supporting removal of the restrictive legends. Further, after requesting a different attorney, defendants continued to remove restrictive legends from CMKM stock based on Dvorak’s unsupported opinion letters. Therefore, the court finds that the SEC is entitled to summary judgment against defendants Global Stock and Bagley.
C. Sergey Rumyantsev
Defendant Rumyantsev was the CEO and head trader at defendant NevWest, the company that caused the billions of unregistered shares to be sold to the public. While CEO, Rumyantsev allowed NevWest to acquire and distribute the newly issued unregistered CMKM stock certificates. Further, Rumyantsev allowed an individual associated with CMKM to open more than thirty (30) different brokerage accounts with NewWest in more than thirty (30) different names, while using the same social security number for most accounts, for the sole purpose of trading the unrestricted shares of CMKM stock.
The court has reviewed the documents and pleadings on file in this matter and finds that Dvorak was both a necessary participant and a substantial factor in the sale of unrestricted CMKM stock in violation of Section 5 of the Securities Act. First, but for Rumyantsev’s involvement in allowing the thirty (30) brokerage accounts to be opened by a single individual under different names, the unrestricted shares of CMKM stock would not have be offered and sold to the public. Second, the uncontroverted evidence shows that Rumyantsev’s actions, or failure to act, far from being unwitting or de minimis, intimately involved him in the sale of unregistered CMKM stock in violation of Section 5 of the Securities Act. As CEO of NevWest, and the individual responsible for company compliance with SEC regulations, he allowed a single individual to open thirty brokerage accounts in different names solely for the purpose of selling the unrestricted shares of CMKM stock.
In opposition, Rumyantsev argues that he was not an active participant in the sale of the unregistered CMKM stock and did not personally open any brokerage accounts or make any active trades of CMKM stock, and thus, he was not indirectly involved in the sale of the unregistered securities. However, it is not determinative of Rumyantsev’s liability whether he personally accepted delivery of the securities, or personally offered them for sale. Rather, the issue is whether he was both a necessary participant and a substantial factor in the overall scheme. Phan, 500 F.3d at 906. Based on the record before the court, the court finds that Rumyantsev was both a necessary participant and a substantial factor in the sale of unregistered securities in violation of Section 5 of the Securities Act. Therefore, the court finds that the SEC is entitled to summary judgment as to defendant Rumyantsev.
IT IS THEREFORE ORDERED that plaintiff’s motion for summary judgment (Doc. #161) is GRANTED. The clerk of court shall enter judgment accordingly.
IT IS FURTHER ORDERED that plaintiff Securities and Exchange Commission shall have ten (10) days from entry of this order to file an appropriate permanent injunction and order of disgorgement against defendants and submit the same for signature.
IT IS SO ORDERED.
10 days..ok
Seeker, Follow the money?
I find if you get down to basics and follow the money..you find answers..so yes
latest CMKM Diamonds information
http://cmkxshareholder.com/CMKX/WELCOME.html
United States District Court
District of Nevada (Las Vegas)
CIVIL DOCKET FOR CASE #: 2:08-cv-00437-LRH -RJJ
Securities and Exchange Commission v. CMKM Diamonds, Inc. et al
Assigned to: Judge Larry R. Hicks
Referred to: Magistrate Judge Robert J. Johnston
Case in other court: 9th Circuit Court of Appeal, 10-16384
Cause: 15:77 Securities Fraud
Date Filed: 04/07/2008
Date Terminated: 07/25/2011
Jury Demand: Defendant
Nature of Suit: 850 Securities/Commodities
Jurisdiction: Federal Question
Plaintiff
Securities and Exchange Commission represented by John M. McCoy , III
Securities and Exchange Commission
5670 Wilshire Boulevard
Los Angeles, CA 90036-5627
323-965-3668
Fax: 323-965-3958
Email: mccoyj@sec.gov
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Blaine T Welsh
U.S. Attorney’s Office
333 Las Vegas Blvd So
Suite 5000
Las Vegas, NV 89101-
Email: Blaine.Welsh@usdoj.gov
ATTORNEY TO BE NOTICED
Karen Lynn Matteson
U. S. Securities and Exchange Commission
5670 Wilshire Blvd., 11th Floor
Los Angeles, CA 90405
(323) 965-3840
Fax: (323) 965-3908
Email: mattesonk@sec.gov
ATTORNEY TO BE NOTICED
Leslie A Hakala
.
5670 Wilshire Blvd, 11th Floor
Los Angeles, CA 90036
323-965-3875
Email: hakalal@sec.gov
ATTORNEY TO BE NOTICED
Molly M White
Securities and Exchange Commission
5670 Wilshire Blvd., 11th Floor
Los Angeles, CA 90036
323-965-3250
Email: whitem@sec.gov
ATTORNEY TO BE NOTICED
V.
Defendant
CMKM Diamonds, Inc.
TERMINATED: 04/21/2008
Defendant
1st Global Stock Transfer LLC
Defendant
NevWest Securities Corporation
TERMINATED: 12/04/2009
Defendant
Urban Casavant
TERMINATED: 09/03/2009
Defendant
John Edwards
TERMINATED: 06/24/2009
Defendant
Ginger Gutierrez
TERMINATED: 12/04/2009
Defendant
James Kinney
TERMINATED: 12/04/2009
Defendant
Kathleen Tomasso
TERMINATED: 06/24/2009 represented by Michael Bakst
.
PMB 702, 222 Lake View
Ste 160
West Palm Beach, FL 33401
Defendant
Anthony Tomasso
TERMINATED: 06/24/2009 represented by Michael Bakst
(See above for address)
Defendant
Helen Bagley represented by Mark S Dzarnoski
Gordan & Silver, Ltd
3960 Howard Hughes Parkway
Ninth Floor
Las Vegas, NV 89109
702-796-5555
Fax: 702-369-2666
Email: USDCNOTICES@gordonsilver.com
ATTORNEY TO BE NOTICED
Defendant
Daryl Anderson
170 Dumond Drive
Laguna Beach, CA 92651
TERMINATED: 06/24/2009 represented by David Hall
Parsons Behle & Latimer
201 South Main Street, Suite 1800
Salt Lake City, UT 84111
801-532-1234
Fax: 801-536-6111
Email: ecf@parsonsbehle.com
TERMINATED: 01/05/2009
Doug Griffith
Kesler & Rust
68 Main Street
2nd Floor
Salt Lake City, UT 84101
PRO HAC VICE
James L Edwards
Parker & Edwards
1389 Galleria Drive
Suite 200
Henderson, NV 89014
702-835-1301
Fax: 702-835-1304
Email: ecf@beckleylaw.com
ATTORNEY TO BE NOTICED
Defendant
Sergey Rumyantsev represented by Sergey Rumyantsev
1951 North Jones Blvd.
Apartment G202
Las Vegas, NV 89108
PRO SE
Defendant
Anthony Santos
TERMINATED: 02/09/2010 represented by Anthony Santos
6965 N Durango Dr
Ste 1115-381
Las Vegas, NV 89149
Fax: 702-974-2150
PRO SE
Defendant
Brian Dvorak represented by John Wesley Hall , Jr.
.
1202 Main Street
Suite 210
Little Rock, AR 72202
(501)371-9131
Fax: (501)378-0888
Email: tjl@forhall.com
LEAD ATTORNEY
PRO HAC VICE
ATTORNEY TO BE NOTICED
Interested Party
Don Jensen
V.
Objector
Harold P Gewerter represented by Harold P Gewerter
Harold P. Gewerter, Esq., Chtd.
2705 Airport Drive
North Las Vegas, NV 89032
702-382-1714
Fax: 702-382-1759
Email: harold@gewerterlaw.com
ATTORNEY TO BE NOTICED
Date Filed # Docket Text
07/25/2011 181 ORDER Granting 161 Motion for Summary Judgment. Clerk of Court shall enter Judgment accordingly. Plaintiff shall have 10 days from entry of this order to file an appropriate permanent injunction and order of disgorgement. Signed by Judge Larry R. Hicks on 7/25/2011. (Copies have been distributed pursuant to the NEF – SLR) (Entered: 07/25/2011)
07/25/2011 182 CLERK’S JUDGMENT in favor of Securities and Exchange Commission and against 1st Global Stock Transfer LLC, Brian Dvorak, Helen Bagley, and Sergey Rumyantsev. Signed by Clerk of Court, Lance S. Wilson on 7/25/2011. (Copies have been distributed pursuant to the NEF – SLR) (Entered: 07/25/2011)
07/27/2011 183 Submission of PROPOSED ORDER on 181 Order on Motion for Summary Judgment, ; filed by Plaintiff Securities and Exchange Commission. [Proposed] Final Judgment of Permanent Injunction and Other Relief Against Defendants 1st Global Stock Transfer, LLC, Helen Bagley, Sergey Rumyantsev and Brian Dvorak (Matteson, Karen) (Entered: 07/27/2011)
08/01/2011 184 DECLARATION of Leslie A. Hakala re 122 Order on Motion for Summary Judgment,,,,,,,, 135 Default Judgment,,, Add and Terminate Parties,, 136 Add and Terminate Parties,,, Judgment,, 140 Protective Order, Add and Terminate Parties, 86 Order on Motion for Service by Publication, 124 Judgment, 98 Clerk’s Entry of Default, ; Proof of Service of Final Judgments by Plaintiff Securities and Exchange Commission. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Certificate of Service)(Hakala, Leslie) (Entered: 08/01/2011)
08/01/2011 185 FINAL JUDGMENT and PERMANENT INJUNCTION in favor of Securities and Exchange Commission and against 1st Global Stock Transfer LLC, Brian Dvorak, Helen Bagley, and Sergey Rumyantsev. Dvorak shall pay a total of $409,638.11 in disgorgement and interest; Bagley shall pay a total of $448,047.87 in disgorgement and interest; Rumyantsev shall pay a total of $48,254.63 in disgorgement and interest. Signed by Judge Larry R. Hicks on 8/1/2011. (Copies have been distributed pursuant to the NEF, and USDC Finance – SLR) (Entered: 08/01/2011)
To the shareholders of CMKM:
After much diligent effort we are now able to release the following new corporate happenings:
We are happy to announce that Steve Walker has signed an agreement with the Company to provide Investor Relations services. With a background in sales and marketing, Steve Walker has been a Golf Professional for over 30 years. While moonlighting as a day trader, he became involved in CMKM in January 2003. This life altering event, led him to stock market reform, to which he remains passionate and devoted to today. In taking on this exciting new challenge for CMKM, Steve says ” my objective is to help reunite CMKM shareholders, so together we can all move forward, as the company emerges from past problems and readies itself for a bright and prosperous future. It is now our time CMKM shareholders, so let’s get together and show the world how strong we really are. I want to thank Jim, Kevin, Bill and the Board of Directors for all their tireless efforts and for giving me an opportunity to be a part of the future of CMKM Diamonds. We cannot change the past, but we can change the future. I stand ready for the task, please join me.” The investor relations hotline is 903-253-0510 and will be open to receive calls from 10am to 6pm Central time on Fridays starting September 2nd. New dates and times for the hotline will be updated as needed. Please note that this line will not have voice mail at this time and only live calls between the above mentioned times will be taken.
As you may already be aware, the Company representitives will be in Las Vegas for trial currently scheduled to begin on or about August 17th. The case going to trial involves our claims against Urban Casavant, Ginger Gutierrez, James Kinney, Attorney Roger Glenn and his former law firm Edwards, Angell, Palmer and Dodge. The case will be presided over by Judge Elizabeth Gonzales. The present calendar call for this case is August 15, 2011. The Company expects jury selection to begin on August 17th and opening arguments and testimony will begin following jury selection. Casavant, Gutierrez and Kinney have defaulted. Glenn and his law firm are disputing all claims being made by the Company. The judge has summoned 100 jurors. Each of the jurors have filled out 20 page questionnaires containing questions specific to this case. The courtroom is small with less than 50 seats to accommodate the public.
The Board of Directors is in the process of bringing the Corporation’s bylaws current and is working to amend them to make sure that we are in full compliance with our commitment to the shareholders and ensuring their rights are upheld in the State of Texas where we are domiciled. Once amended, the bylaws will be updated to the website. The Board of Directors and Company Executives remain committed to protecting the interests of the company and the shareholders as a whole.
While reviewing the current corporate bylaws, the Board of Directors made the determination that the postion of CEO as advertised is not required. The Board mandated the postion of CEO be changed to President. After reviewing the resumes submitted for the leadership position of the Company, the Directors came to the conclusion that the best possible candidate for the job is already on board. That said, the Directors are very pleased to announce that Mr. James Lowden has agreed to accept a permanent role as President of the Company. “The Board of Directors are extremely pleased that Mr.Lowden has agreed to accept our offer to join the team for the long term and would like to sincerely thank him for all of his efforts. Mr.Lowden possesses the necessary business accumen, professional experience and keen eye for detail that our company requires to be successful. As the company moves forward, we are extremely confident that Mr.Lowden will provide the continued leadership,knowledge, and consistent determined work ethic he has demonstrated during his tenure with the company. Please join us in welcoming Mr. Lowden to our team.”
The Company would like to extend its gratitude to the other candidates that applied for the CEO / President position. The response from our request for candidates was very reassuring that there are people committed to assisting us in making our company successful.
The Board of Directors has asked former officer and Director Kevin West back to take on the role Vice President of the Company to assist Mr. Lowden in their continued efforts moving the company forward. Both Gentlemen work well together and through these combined efforts have been able to stand the company back on its feet. This team is desirious to see the growth of CKMK. Mr. West stated, “I am humbled and honored to be asked back by the Board of Directors. I feel rested and excited to once again be doing my part to help the Company move forward.”
The shareholder meeting that was fully intended to be accomplished by June of this year has had to once again be put on hold. The Directors of the Company wish to make known to the shareholders that the lack of proper funding is the “only” reason that there has not been a shareholder’s meeting since new management took over in 2007. With over 50,000 shareholders of record, including over 10% with international mailing addresses, the hard costs of a meeting at this time is not possible. Even with discounted rates being offered to the Company, the “minimum” costs of printed, third party mailed and received proxy statements plus envelopes and other hard costs stand at $175,000. On top of these costs, there will have to be a meeting venue, security and refreshments to accommodate hundreds and perhaps even thousands of shareholders wanting to attend in person. This puts the minimum cost to hold an annual shareholder meeting somewhere between $190,000 and $250,000 for one meeting with the same or even higher costs annually thereafter. That said, the Company would need to have enough cash in the bank to not only hold the meeting, but to continue to sustain running the Company for at least the next several months at which time another shareholder meeting would need to be planned, funded and held. As you can see, the costs of these meetings are very prohibitive at this time because of the extreme size of our shareholder base.
On February 26th of this year, the Company announced its desire to create a round table team of approximately 7 individuals. Since that time the Company has received fewer resumes than positions needed from shareholders interested in a possible place on this team. We would like to extend the resume intake period for another 90 days. After this period, depending on the number of resumes, the Company will give a final review and recommendation to the Board of Directors for the seven members to be placed.
CMKM and 101047025 Saskatchewan LTD still have a valid agreement in place with the remaining claims from the Fort a la Corne area. This agreement calls for the development of a New Corp for the exploration and possible development of these claims. The Board of Directors of CMKM have already endorsed the agreement to move forward with the plans for this venture and are patiently waiting for all of the pieces on the Company side of things to fall into place.
Once again, the Company would like inform the shareholders that we believe in the success of CMKM Diamonds Inc. and will continue to work for the best interest of the all shareholders.
Friday, April-15-11
Shareholders;
We the undersigned are directors of CMKM Diamonds Inc. We do not believe that the board of directors for CMKM Diamonds Inc. have been in any way negligent or derelict in any of the duties to inform and protect shareholders in any matters.
Firstly, your demand letter states that you would like to be informed of “funds purported to exist” in the Bivens lawsuit that has been before the courts brought by certain shareholders or on behalf of certain shareholders through attorney A. Clifton Hodges.
You spoke to the fact that Mr. Hodges testified under oath in the court proceedings. On this point we must respectfully disagree. Mr. Hodges was speaking on behalf of his client(s) and as such was not under oath. Lawyers are allowed to advocate for their client based on facts they believe to be true. Mr. Hodges was in fact arguing a side of the case, and as such is not “testifying” as you have misstated in your letter. “The case brought by Mr. Hodges was dismissed by the Court and is now on appeal.” Mr. Hodges is pursuing the matter on appeal at this time. The company has no obligation nor would it be a wise use of resources to attempt to get involved in this matter. In fact spending valuable company resources and time on something that has never been validated by our own extensive investigation would, in the opinion of the board, be irresponsible. This company has always had an open line of communication with Mr. Hodges. The company has requested on multiple occasions from Mr. Hodges any such tangible evidence, including but not limited to any pertinent documentation which. For reasons known only to Mr. Hodges, the company has not received any documented evidence of any trust that is “purported” to exist. The company has NO knowledge of any type of trust fund and has no evidence that such a trust has ever existed.
Shareholders have received transparency of everything this board has been doing since it’s inception. The Company has posted on the Word Wide Web evidence from our many litigation activities that the company is pursuing in order to restore money to the company bank accounts. This is being done for the benefit of all shareholders. The Company has stated and restated our goal of being a viable and fully legally compliant company in the future. With in the last calendar year the Company built the financial records from recovered data that was thought lost at one time, filed all taxes for pertinent previous years and posted the information on our company website for the shareholders to see.
With all due respect to the writers of the demand letter to the company, you are misinformed on some of your “facts”. It is stated that the concerns of shareholders are “unanswered and ignored”. This is quite simply not factual. The company website has court filed documents on it that show where the company is spending it’s resources. This is done with great consideration and care in fulfilling our duties to shareholders.
The board at this time finds that the request to pursue action against Mr. Hodges to be misguided and unwise. The case before the court as mentioned above was dismissed. The company has asked for evidence and received none. There is no meritable action that we can find to take at this time There are simply no accounts, trusts, funds and settlement damages that the company can find to pursue. We have stated and restated this several times in the past. We are hopeful for all shareholders and this company that a compensation fund of some type does exist and that Mr. Hodges is successful in the pursuit of this matter based on the information he possesses and wishes to keep confidential. If the company can assist in that endeavour it stands ready to assist Mr. Hodges and his shareholder clients.
Demanding that we pursue something that does not appear to exist would be irresponsible and would cause the company to expend valuable resources in the process. We have instructed management to obtain a copy of any trust agreement holding funds for shareholder regardless of the source, this management has not found evidence any agreement has ever been in existence. In response to the accusation that the Board is in breach of its fiduciary duty, please see the financial statements posted on our company website.
It should also be noted that the Frizzell Law Firm is NOT an officer of the company. Mr Frizzell is a contingency attorney that the company hired to perform litigation against the former insiders and associate of the company in order to recover assets that were illegally taken from the company and it’s shareholders. You are requested not to contact his office for information about the company’s affairs. The company is diligently working on searching for a Public Relations officer that will be available to answer general shareholder questions. A basic set of protocols and appropriate contact methods will be posted to our website as soon as this process is completed. The company is also reviewing data received from candidates for the CEO position that is vacant and will inform shareholders when a suitable candidate is chosen.
The Board hereby recognizes the demand to answer the shareholders letter and as evidenced by the date stamp on this letter we have complied with said demand. Please continue to monitor our website at http://www.cmkmdiamondsinc.com for further litigation progress and company updates.
The CMKM Diamonds, Inc. Board of Directors
thanks for the update..things are progressing we see..
STATE OF THE INVESTIGATION
Eric Fryar, Avniel Adler
When the Fryar Law Firm began investigating the existence of a CMKX trust fund there were a myriad of issues to address. Initially, there was the extensive administrative effort of setting up representation and communication of a shareholder group in excess of 200—sending out attorney engagement letters to over 200 clients, answering clients’ questions, and collecting the funds necessary to sustain the investigation. The firm created a website as a mainframe for client feedback and to organize our work product and evidence. Finally, the Firm reviewed company history, researched the legal and factual issues of the case and read and organized the litigation pleadings of the several lawsuits that CMKX has been a party to. All of these start-up costs were performed at a considerable discount to give our clients the best opportunity at a meaningful investigation into their claims.
The investigation has had a specific focus throughout, namely: how can we determine whether a CMKX trust fund exists at a minimal expense? The Firm created an Investigation Schedule in an attempt to set-forth what the shortest path to unequivocal evidence of a trust fund would be. Naturally, the course of our investigation has informed us what the next most cost-effective step should be and our investigation plan has evolved accordingly.
Over the past few months we have spoken to a number of players in the CMKX saga. We contacted Bill Frizzell repeatedly to see what connection there exists between CMKM’s efforts at securing assets stolen by corporate insiders (Casavant, Edwards, etc.) and a possible CMKX trust fund. Frizzell disclaimed any connection between the two and explained that the funds stolen by Casavant and co. were easily traceable and that has been the focus of CMKX’s litigation efforts. We asked Frizzell about whether the company has any evidence of naked short selling. Frizzell has guarded this information as extremely private and claims that the company is not allowed to release this information. In other words, to obtain this information we would have to litigate with the company (a simple inspection request will not do). [Please be aware: The Fryar Law Firm has no connection with or prior knowledge
of Mr. Frizzell. Our approach to date has been to deal with him and the company in a polite and professional manner in order to obtain whatever information and assistance might be forthcoming. We have always understood that the company is not our primary target and that any time and money spent in needless wrangling on that front would likely be wasted. If necessary, however, we will not hesitate to deal with Mr. Frizzell in a more aggressive manner.]
In a similar vein, we have spoken to other attorneys that have favorably settled naked short selling cases. They too have confirmed that obtaining evidence of naked short selling from government entities is an uphill battle and likely a waste of time. Moreover, litigating against brokerage houses or other entities involved in the naked short selling of a company’s stock costs millions of dollars to finance. Thus, the Firm determined that litigating with Frizzell and CMKX would not be worthwhile at the moment or within the scope of our investigation. Likewise, sending Freedom of Information Acts to government entities would probably not yield any helpful information in the short term.
We have contacted a host of people who are allegedly connected to the missing trust account. Peter Maheu told us that he has no knowledge of any CMKX trust fund and that he would not return any more phone calls or letters. Keith Staub, the U.S. attorney who represented the SEC in the Bivens action said he had no knowledge whatsoever of any government trust, and in fact, that he was only put on the case to argue it out of court. Any real information would be in the SEC’s possession. Michael Phillips confirmed his story about seeing 3 CMKM trust accounts totaling trillions of dollars (more on him below). Lindell Bonney hung up on the Firm after we inquired what it means to be a “Paymaster”. Al Hodges never returned any of our letters or phone calls.
Following these efforts it occurred to us that deposing the parties who allegedly have personal knowledge of a CMKX trust fund would be the best plan of attack. Those parties are Al Hodges, Michael Phillips and Morris Richards. Consequently, we filed an extensive Rule 202 Petition seeking the depositions of Hodges, Phillips and Richards without filing a lawsuit.
One might wonder, what does it mean to depose a party without filing a lawsuit? That is an excellent question and one that required considerable legal research. Ordinarily, in order to issue subpoenas to compel testimony under oath and the production of documents requires the filing of a lawsuit. However, filing a lawsuit without an adequate factual basis can result dismissal without the opportunity to conduct discovery (this is what happened in the Hodges lawsuit), and more significantly can subject attorneys and their clients to monetary sanctions. Moreover, the persons who claim to have the information necessary for a lawsuit (Hodges, Phillips and Richards) would not be the target of the lawsuit, but only witnesses. Therefore, we are utilizing a little-known and little-used procedural tactic provided by Rule 202 of the Texas Rules of Civil Procedure. This is an innovative approach
and is not guaranteed success, but we feel very optimistic that we have put together a compelling and valid legal position.
What we are doing is representing to a court in Texas that we wish to secure deposition testimony from 3 out-of-state witnesses for use in an anticipated lawsuit. Thus, no one is being sued here. We are telling a Judge that, in the interest of justice, the CMKX shareholders need to depose Hodges, Phillips and Richards, so that their testimony is preserved for use in an anticipated lawsuit. In essence, a lawsuit could not be filed until we have a responsible party to sue. We need to depose Hodges, Phillips and Richards to determine who we could sue to reclaim CMKX trust funds.
It is worth noting that a Rule 202 Petition is an extremely rare procedure. This is particularly true in light our request to depose out-of-state residents. The Petition seeks a deposition of Hodges in California and a deposition of Phillips and Richards in Florida. Thus, the Texas Court must issue what are termed “Letters Rogatory” to request courts in California and Florida to issue subpoenas to our witnesses.
Our petition is also a persuasive document. We must persuade a judge that our deposition of Hodges does not seek to discover privileged “attorney work product”. Rather, we are only interested in hard evidence of a CMKX trust fund within Hodges’ possession, custody or control. We may not discover material that Hodges prepared for use in the Bivens action, his mental impressions developed in anticipation of the Bivens action, or the communications between any of the parties to the Bivens action or their representatives, employees or agents.
The schedule of events is as follows: a hearing will be held on whether the petition will be granted (likely at the end of August or beginning of September). We will notify Hodges, Richards, and Phillips that the hearing will take place. If the judge grants our petition, Mr. Fryar and Mr. Adler will depose Hodges in California, and Richards and Phillips in Florida. We have requested that the witnesses produce documents at the deposition, e.g., a screen shot of the computer screen Phillips allegedly viewed, or a document verifying that Maheu met with the DTCC (in the case of Richards). These documents will be inspected and copied, and posted on the PBWorks website. The depositions will probably take place some time in October, depending on how long it takes to process the Letters Rogatory and set deposition dates in California and Florida. It will be necessary to retain the services of
local attorneys in California and Florida to assist in the necessary filings in those states.
We would like to remind the shareholders the scope of our engagement. We have been retained to investigate the existence of a CMKX trust fund. We have not been retained to file a lawsuit. There is no magic bullet to remedy the wrongs perpetrated on the CMKX shareholders. Our best weapon is reliable evidence. If our investigation yields reliable evidence the shareholders will have something of value for use in an anticipated lawsuit. For now, the shareholders must understand that the Firm is doing our best to secure the information you have retained us to uncover. Additionally, any such lawsuit would also face hurdles of statutes of limitations, jurisdictional issues, and other potential obstacles. The best way to determine the viability of any such a litigation effort must start is valid evidence.
In closing, we would like to assure you that we believe we are breaking serious ground in this investigation and hope to have real answers for you shortly. We have no interest in fraternizing with any of the parties connected with the controversy. Our only goal is to get reliable information for the shareholders. We intend on securing depositions before suit, because we feel it is the fastest way to verify the existence of a CMKX trust fund at a minimal expense. Thank you again for your patience and support.
This message was sent to xxxxxxx from:
Eric Fryar | 1001 Texas Ave, Ste 140 – #111 | Houston, TX 77002-3194
thanks
Good luck with getting Mayheu, Hodges or any of the others to be forthcoming with anything.
Country boy, Iron Bob died years ago, bless his socks and hodges is running stall tactics along with fizzle, it’s a gobernent approve scam and cover up we paid for them to mine a diamond lined DUMB
I understand that it is not usual to have to answer questions regarding a
case which the SEC is a defendant, but this case has special circumstances.
In this case, as a victim in this crime, I have certain rights, and one is
the release of my restitution in a timely manner as required by law. In the
case you mention above, Al Hodges is trying to not only release the
restitution set aside for his plaintiffs in that case, but there are also
tens of thousands of known victims of that exact same crime who have no
representation in this matter. In fact, the authorities have concealed
massive crimes against the victims in this case by cutting a deal with the
brokers who counterfeited CMKX stock, they paid into a frozen trust fund to
avoid criminal prosecution for counterfeiting CMKX stock into the hundreds
of billions. Again that fund has restitution for tens of thousands of
victims not in the bivens case, I am one of those victims, and I have
rights.
The SEC needs to address all the victims who have no representation in this
matter, and to ensure their restitution is released as required by law. I
should not have to have a lawyer to force the SEC and DoJ to do what is
their public obligation, why is the SEC not performing that obligation
without having litigation against them to force them to. It is absurd at
this point to pretend this isn’t happening when Al Hodges has sworn under
oath that there is talks to release the restitution held for all victims in
this case,and has an eye witness to the deals cut by the SEC and DoJ.
In Mr. Hodges latest filing he asked for a thirty day extension in his case
against the SEC as there was a pending imminent settlement that would see
him granted the relief he sought. He stated this in an affidavit under
threat of perjury. That relief was in fact money for all victims in this
case, not just his plaintiffs. The fact that those talks are even happening,
unless Mr. Hodges perjured himself, mean that all victims in this case are
having their rights violated at this moment by the DoJ and SEC by not being
included in them. The SEC should make all victims aware of what is
transpiring with their restitution.
I would like immediate representation at these talks, and have the right as
a victim to know why my restitution is being illegally withheld from me. If
the SEC refuses to do their obligation and protect all the victims in CMKX
I will attempt to foia or subpoena the CMKX trading records and Cert Pull
Work Product, which will show the SEC allowed hundreds of billions of shares
to trade after they were fully aware of the fraud, after they subpoenaed the
fraud records used in the SEC’s civil actions, and after shareholders lawyer
Bill Frizzell presented Leslie Hakala with indisputable proof of massive
naked shorting in CMKX. Hakala allowed the fraud to continue for months on
end, allowed hundreds of billions of shares to be sold, and allowed 250
million dollars to be stolen from the victims in this case. She could have
stopped it easily, but didn’t. The only reasonable explanation for that to
happen is this was the sting operation outlined in Al Hodges bivens case,
one in which he has an eye witness to the deals cut by the SEC and DoJ to
allow the brokers to avoid criminal prosecution. One in which he now swears
had talks happening that would grant him the relief he sought and an
imminent settlement in this case. I have the right as a victim to know of
these talks, and who was in them from the government and who represented me.
I have the right as a victim to know why they fell apart, and what is being
done to remedy the situation. I have a right to know if Al Hodges committed
perjury.
Thank you,
SEC Announces Roundtable on Microcap Securities
FOR IMMEDIATE RELEASE
2011-186
Washington, D.C., Sept. 19, 2011 — The Securities and Exchange Commission today announced that it will host a public roundtable next month to discuss the unique regulatory issues surrounding the execution, clearance, and settlement of microcap securities.
The roundtable is being sponsored by the SEC’s Microcap Fraud Working Group, a joint initiative of the Division of Enforcement and Office of Compliance Inspections and Examinations. The Working Group is the Commission’s primary resource for issues relating to market participants and trading practices concerning securities primarily quoted on the OTC Bulletin Board (OTCBB) or OTC Quote (previously Pink Sheets).
The event will take place on October 17 from 1 p.m. to 5 p.m. at the SEC’s Washington D.C. headquarters. It will feature in-depth discussions of key regulatory issues including Anti-Money Laundering monitoring, compliance challenges, and potential changes to the regulatory framework. Panelists will include representatives from The Deposit Trust Company, broker-dealers, the Financial Industry Regulatory Authority and others.
The roundtable is part of an ongoing SEC effort to focus on the particular challenges facing issuers and regulated entities within the changing business and regulatory climates. The purpose of the roundtable is to enable Commission staff to gather ideas and request input for regulatory measures surrounding the execution, clearance and settlement of low-priced securities.
The event is open to the public with seating available on a first-come, first-served basis. The roundtable also will be webcast live on the SEC website and archived for later viewing. For more information about the roundtable, contact the Division of Enforcement at 202-551-6607.
coalition asks the sec to answer each question listed here
Additional evidence implicating the Authorities in directly aiding the corrupt insiders of CMKX and others who defrauded shareholders is included in a letter by Mark Faulk, CEO of CMKX. He outlines the fraud that was allowed to occur by the SEC and other Authorities; all of whom stood by silently as the fraud happened after they had subpoenaed the records that were used in the indictments:
http://www.cmkmdiamondsinc.com/letter-m_index.html.
In the CMKM Diamonds Inc. case, specific evidence was given to Mr. Burkin which clearly showed the SEC, FBI, DOJ, and IRS were complicit in the crimes which took place and the cover up of the fraud by all of the Wall Street firms involved, a mirror image of Operation Uptick and Operation Vulgar Betrayal. Here is a list of the crimes alleged to have been committed by the SEC, FBI, DOJ, and IRS, further known as The Authorities in the CMKM Diamonds Inc. case. This list either shows the Authorities allowed this crime to take place and aided and abetted the fraud committed against CMKX shareholders, or they allowed this fraud to take place to run a sting operation as outlined in Al Hodges bivens case and have harmed all victims by withholding illegally their restitution for over five years. There clearly there needs to be an independent investigation into these points:
1. The Authorities investigation (into CMKX) was well under way by May 2004, before hundreds of billions of shares were sold to investors in a publicly traded company and the money laundered. Corporate insiders were aided and abetted in their crimes by high-powered attorneys, accountants, transfer agents, major banking institutions, brokerage houses, and clearing firms. It occurred right under the noses of the SEC and NASD (now FINRA); both agencies ignoring dozens of blatant warning signs, allowing the scam to go on for years. The Coalition asks for an investigation into why the Authorities just allowed these crimes to happen and the money laundered over years when it was their duty to stop these crimes when they detected them in 2004, costing the company and its shareholders hundreds of millions of dollars.
2. The Coalition alleges and has provided evidence that Leslie Hakala conspired with ex-SEC attorney D. Roger Glenn (who wrote opinion letters allowing over 300 billion shares of stock to be dumped into the market) to facilitate the sale of hundreds of billions of shares of CMKX stock, all proceeds from those sales were apparently stolen right under the nose of The Authorities while they watched. D. Roger Glenn escape and indictment by the DOJ for his role in this fraud. PR person for CMKX, Andrew Hill, has publicly stated Leslie Hakala was fully aware of what was happening inside CMKX and had been in contact with D. Roger Glenn in 2004. Furthermore, the FBI never questioned Andrew Hill, even though he had pertinent, incriminating first-hand information in this case. The Coalition asks for Andrew Hill to be deposed and Leslie Hakala and other SEC enforcement attorneys investigated for their role in this fraud and its cover up.
3. When Leslie Hakala met with CMKX management and shareholders lawyer Bill Frizzell on May 11th 2005, she was fully aware of the fraud inside CMKX at this time. Bill Frizzell presented her with indisputable evidence of massive counterfeiting of CMKX stock, a fact that later proved to be true as 622 billion unregistered shares were sold in CMKX stock out of 703 issued and outstanding shares in total. Mr. Frizzell had direct evidence of hundreds of billions of unregistered share sales by brokers such as Etrade, Ameritrade, TD Waterhouse, and others. None of those brokers were ever indicted and no civil action has ever taken place despite the indisputable evidence of their crimes. Not only did Leslie Hakala not stop these crimes from happening, and saving shareholders hundreds of millions of dollars, but she allowed the fraud to continue. These corrupt brokers were allowed to sell hundreds of billions of additional counterfeit shares, steal the illegal proceeds, and then have their crimes completely covered up. Hakala allowed corrupt management to launder their proceeds from their crimes for years. The Coalition asks for an immediate investigation into the evidence presented at that meeting and to the SEC actions and inactions after that meeting.
4. Co-conspirators John Edward Dohnau, Michael Williams, and Rendal Williams, plus a cast of numerous other associates have not been charged for their part in this massive fraud. Why?
5. The phone records from NevWest, which show that they contacted the SEC each time Edwards came in with CMKX certs to sell, many of which were clearly forged and fraudulent, some even “signed” by an individual who had been deceased for months. Instead of taking action to halt the obvious fraud against innocent shareholders, the SEC and NASD (FINRA) ignored the evidence and dozens of other red flags, allowing the scheme to continue unabated, costing unsuspecting buyers of CMKX stock hundreds of millions of dollars. The Coalition wants access to those phone records and an investigation into why the SEC allowed those certs to be sold after they had already subpoenaed the fraud records used in the indictments and SEC civil action.
6. Clearing firm Computer Clearing Services (now owned by Penson Worldwide, Inc.) helped John Edwards trade over 250 billion shares of CMKX stock totaling over $53 million. Clearing firms and brokers weren’t the only ones who ignored red flags that should have triggered the filing of Suspicious Activity Reports. Several Nevada banks, most prominently Silver State Bank and Wells Fargo Bank, allowed CMKM Diamonds and related fraudulent companies to run hundreds of millions of dollars through dozens of accounts. Penson is mentioned in the article, which documents the counterfeiting of the stock market by Wall Street, organized crime and terrorists; a crime which all Authorities were fully aware of before the year 2000 and did nothing to stop although trillions of counterfeit shares were sold into the market and trillions of dollars stolen from the general public: http://www.marketrap.com/article/view_article/91158/penson-worldwide-inc-pnsn-rolling-stone-the-mafia-and-naked-short-selling. The Coalition asks for an investigation into Penson Worldwide’s history of covering up the crimes of Wall Street, organized crime, and terrorist naked short sales, and those of John Edwards in particular.
7. The Authorities subpoenaed the Silver State Bank regarding suspicious activities on September 5th 2004 (the Silver State Bank had no action taken against it for its role in this fraud) BEFORE hundreds of billions of shares were sold in CMKX stock. The evidence gathered from that subpoena showed 64 million dollars went through the Silver State Bank. Among the transactions executed by Silver State Bank after those subpoenas include:
• Wire transfers totaling hundreds of thousands of dollars were executed with only the notation “transferring to Personal Acct. per cust. Transfer via phone”.
• Checks from various accounts set up as shell companies and controlled by Casavant and Edwards written out only to “CASH”…including one for $350,000.
• Multi-million dollar wire transfers between Edwards and Casavant run through dozens of accounts they controlled there.
• Millions of dollars written out of company accounts to Casavant, his wife Carolyn, and several family members; often on temporary checks.
The Coalition asks for an investigation into why the Silver State Bank continued to allow money laundering into the millions of dollars when the Authorities had already subpoenaed the fraud records used in the indictments and civil actions. We also ask for an investigation into why the DOJ and SEC allowed these crimes to continue unabated when they already had the evidence of the crimes.
8. The Authorities allowed Robert Maheu, Urban Casavant, and other management to continue to promote the sale of CMKX stock through various means, including a drag racing team, after they were fully aware of the fraud inside CMKM Diamonds Inc. Robert Maheu, Roger Glenn and Don Stoecklein were not indicted for his role in this fraud although six hundred billion shares were sold while they ran CMKX. The Coalition wants an investigation into why these individuals were not indicted; why the DOJ and SEC continued to allow them to promote this fraud after they had subpoenaed the fraud records; and why they allowed these masterminds the time to launder their proceeds from their crimes.
9. In letters to other brokers in mid-2005, shareholders lawyer Bill Frizzell not only identified the brokers who sold over 300 billion shares of CMKX stock, but those brokers continued to sell unregistered shares for months while The Authorities watched. The money from the sale of hundreds of billions of shares (approximately 190 million dollars) was stolen by these brokers, with none of those known brokers being indicted, and none of that money recovered. Why were these brokers not indicted, and why were their crimes covered up? Why did the Authorities continue to allow them to sell unregistered securities in CMKX stock when the fraud was clearly detected?
10. In Bill Frizzell’s letter to TD Waterhouse in Canada, he explains that none of the shares sold by them were even on the NOBO list, meaning they were sold unregistered. TD Waterhouse continued to sell unregistered shares of CMKX stock for months, as did all other Canadian brokers. In his letters, Mr. Frizzell also stated that the SEC was watching this very closely. Mr. Frizzell stated in his deposition to the SEC that none of the Canadian brokers had shares on the NOBO list, indicating all shares sold in Canada were sold unregistered. There has been no action against any Canadian brokers from The Authorities and since all illegal shares sold by Canadian brokers were grandfathered, they would not have to cover their fraud. The Coalition asks that there be a public inquiry (by an outside agency) into the grandfathering of trillions of counterfeit shares by Wall Street, organized crime, and by terrorists. The crimes could have been stopped well over a decade ago, but were allowed to happen, and then the fraud covered up. Why?
11. According to Bill Frizzell, Andrew Petillion (Branch Chief of Enforcement at the Pacific Regional Office for the SEC) issued this warning with regards to his evidence of the naked short in CMKX stock:
“By the way, if this is an orchestrated short squeeze against the brokerage houses to make the stock price go up, we will come after those who are responsible. We would not look kindly on a cert pull because it would cause market manipulation.”
The Authorities allowed CMKX stock to be manipulated down, but would not allow the natural correction for this: a short squeeze. This mirrors what the SEC said to David Patch regarding the Grandfather Clause: it was supposed to stop runs in stocks which had been manipulated by Wall Street firms, which in-turn counterfeited trillions of shares of stock in hundreds if not thousands of publicly traded companies. An example of this is Eagle Tech Communications. Authorities knew Eagle Tech was the victim of counterfeiting by Wall Street firms and crime families, but grandfathered those counterfeit shares so they would never have to be covered, while protecting the criminal firms at the same time. The Coalition wants to know why the DOJ and SEC allowed Wall Street firms to create the Grandfather Clause (with the help of the SEC) as this allowed felonies to be covered up; felonies committed by terrorists and organized crime families.
12. The Authorities and alleged corrupt Judge, Brenda Murray (see the modus operandi of Brenda Murray in evidence presented regarding the Gary Aguirre cover up), would not allow evidence of massive naked shorting in CMKX stock in the administrative hearing (October 5, 2005) that eventually ended up in the revocation of CMKX stock. Financial expert Jim DeCosta analyzed the naked short in CMKX stock and found it to be 14-1. No evidence of any other broker’s fraud or the fraud already detected by The Authorities was entered into the hearing, and billions of shares of CMKX stock traded afterwards; all monies stolen from shareholders. The Coalition asks for an investigation into the cover up of the largest naked short in history by Judge Brenda Murray and the SEC enforcement attorneys. The Coalition asks for an investigation into why the Authorities allowed this crime to continue when clearly they were aware of it, and why did they allow all of the money to be stolen from the victims in this case when they could have stopped it in 2004?
13. In Civil Action No. 2:08-cv-0437, 4-7-08, United States District Court for the District of Nevada, Leslie Hakala alleges that “To divert attention from their own dumping of CMK shares, Casavant persuaded CMKM’s investors that the reported high trading volume in CMKM stock reflected extensive “naked short selling” rather than ordinary stock dilution.”
Let’s see what the answers are.
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 65584 / October 18, 2011
ADMINISTRATIVE PROCEEDING
File No. 3-14592
In the Matter of
Sergey Rumyantsev,
Respondent.
ORDER INSTITUTING
ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS
I.
The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Sergey Rumyantsev (“Rumyantsev” or “Respondent”).
II.
In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the “Offer”) which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission’s jurisdiction over him and the subject matter of these proceedings, and the findings contained in Section III.2 below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions (“Order”), as set forth below.
2
III.
On the basis of this Order and Respondent’s Offer, the Commission finds that:
1. Rumyantsev was the CEO and head trader at NevWest Securities Corporation (“NevWest”), then a broker-dealer registered with the Commission, from at least January 1, 2002, until April 13, 2006. Rumyantsev was also one of four members of the Board of Directors of NevWest, which had policy-making authority. Rumyantsev holds Series 4 (registered options principal), 7 (general securities representative), 24 (securities principal), 27 (financial and operations principal), 53 (municipal securities principal), 55 (equities trader) and 63 (state securities) licenses. Rumyantsev, 41 years old, is a resident of Las Vegas, Nevada.
2. On August 1, 2011, after the Commission’s motion for summary judgment against Respondent was granted, a final judgment was entered against Rumyantsev, permanently enjoining him from violating Section 5 of the Securities Act of 1933, 15 U.S.C. § 77e, and additionally permanently barring him from participating in an offering of penny stock, in the civil action entitled SEC v. CMKM Diamonds, Inc. et al., Case No. 2:08-cv-00437-LRH-RJJ, in the United States District Court for the District of Nevada.
3. In granting the Commission summary judgment, the Court concluded, among other things, that the following facts were uncontroverted: (a) while CEO of NevWest, Rumyantsev allowed NevWest to acquire and distribute newly issued unregistered stock certificates representing billions of shares of stock of CMKM Diamonds, Inc., a Nevada corporation, from which the restrictive legends had been improperly removed by CMKM’s transfer agent; (b) Rumyantsev allowed an individual associated with CMKM to open more than thirty different brokerage accounts at NevWest in more than thirty different names, while using the same social security number for most accounts, for the sole purpose of trading the unrestricted shares of CMKM stock, which were sold in several unregistered distributions between December 2002 and September 2004.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions agreed to in Respondent Rumyantsev’s Offer.
Accordingly, it is hereby ORDERED pursuant to Section 15(b)(6) of the Exchange Act that Respondent Rumyantsev be, and hereby is:
barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization; with the right to apply for reentry after five years to the appropriate self-regulatory organization, or if there is none, to the Commission.
Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any
3
disgorgement ordered against the Respondent, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a customer, whether or not related to the conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.
By the Commission.
Elizabeth M. Murphy
http://www.sec.gov/litigation/admin/2011/34-65584.pdf
Secretary
Originating Court Information:
District: 0973-8 : 8:10-cv-00031-JVS-MLG
Court Reporter: Blanca Aguilar, Official Court Reporter
Trial Judge: James V. Selna, District Judge
Date Filed: 01/08/2010
Date Order/Judgment: Date Order/Judgment EOD: Date NOA Filed: Date Rec’d COA:
12/29/2010 12/29/2010 01/27/2011 01/27/2011
03/03/2011 6 Filed order MEDIATION (EPM): The Mediation Program of the Ninth Circuit Court of Appeals facilitates settlement while appeals are pending. See Fed. R. App. P. 33 and Ninth Cir. R. 33-1. The court has scheduled a telephone settlement assessment conference, with counsel only, on March 21, 2011, at 2:00 p.m. PACIFIC (San Francisco) Time to discuss whether this case is appropriate for participation in the Mediation Program….The briefing schedule previously set by the court remains in effect. [7666677] (SM)
03/09/2011 7 Filed (ECF) notice of appearance of Keith Staub for Appellees Luis A. Aguilar, Paul S. Atkins, Roel C. Campos, Kathleen L. Casey, Christopher Cox, Cynthia A. Glassman, Annette L. Nazareth, Troy A. Paredes, Mary L. Schapiro and Elisse B. Walter. Date of service: 03/09/2011. [7673754] (KMS)
03/09/2011 8 Attorney Andre Birotte Jr. substituted by Attorney Keith Miles Staub. [7673766] (RL)
03/22/2011 9 Filed order MEDIATION (LJ): On March 21, 2011, a telephone conference was held with Circuit Mediator Lisa Jaye. The court has determined that this appeal will not be selected for inclusion in the Mediation Program. Counsel are requested to contact the undersigned should circumstances develop that warrant further settlement discussions while the appeal is pending. [7689630] (SM)
07/08/2011 10 14 day oral extension by phone of time to file brief. Appellant David Anderson, Appellant Reece Hamilton, Appellant Robert Hollenegg, Appellant Sheila Morris and Appellant Nelson L. Reynolds opening brief due 07/25/2011. Appellee Luis A. Aguilar, Appellee Paul S. Atkins, Appellee Roel C. Campos, Appellee Kathleen L. Casey, Appellee Christopher Cox, Appellee Cynthia A. Glassman, Appellee Annette L. Nazareth, Appellee Troy A. Paredes, Appellee Mary L. Schapiro and Appellee Elisse B. Walter answering brief due 08/24/2011. The optional reply brief is due 14 days after service of the appellee brief. [7812787] (LN)
07/21/2011 11 Filed (ECF) Appellants David Anderson, Reece Hamilton, Robert Hollenegg, Sheila Morris and Nelson L. Reynolds Motion to extend time to file Opening brief until 08/24/2011. Date of service: 07/21/2011. [7829340] (AH)
07/27/2011 12 Filed order (Appellate Commissioner) Appellant’s motion for a second extension of time to file the opening brief is granted. The opening brief is due August 24, 2011. The answering brief is due September 23, 2011. The optional reply brief is due within 14 days after service of the answering brief. (Pro Mo) [7835375] (MS)
08/22/2011 13 Filed (ECF) Appellees Luis A. Aguilar, Paul S. Atkins, Roel C. Campos, Kathleen L. Casey, Christopher Cox, Cynthia A. Glassman, Annette L. Nazareth, Troy A. Paredes, Mary L. Schapiro and Elisse B. Walter Motion for summary affirmance. Date of service: 08/22/2011. [7866111] (KMS)
08/23/2011 14 Filed (ECF) Appellees Luis A. Aguilar, Paul S. Atkins, Roel C. Campos, Kathleen L. Casey, Christopher Cox, Cynthia A. Glassman, Annette L. Nazareth, Troy A. Paredes, Mary L. Schapiro and Elisse B. Walter Supplemental Motion for summary affirmance. Date of service: 08/23/2011. [7868121] (KMS)
10/27/2011 15 Filed order (Appellate Commissioner) The motion for summary affirmance of this appeal is denied without prejudice to renewal following the filing of the opening brief. See United States v. Harris, 846 F.2d 50 (9th Cir. 1988). The request to stay the briefing schedule pending disposition of the motion to dismiss is denied as unnecessary. See 9th Cir. R. 27-11. The opening brief and excerpts of record are due December 5, 2011; the answering brief is due January 4, 2012; and the optional reply is due within 14 days after service of the answering brief. (MOATT) [7945486] (SM)
********************************
Glisson Case:
UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA
* * * * *
SECURITIES AND EXCHANGE
COMMISSION, ) JUDGE LLOYD D. GEORGE’S
Plaintiff )
) ORDER REGARDING TRIAL
)
VS. )
)
MARCO GLISSON, ) 2:09-CV-00104-LDG-GWF
Defendant )
)
)
1. Attached hereto is a list of cases that are presently scheduled for trial before the Honorable Lloyd D.
George, United States District Judge, at Las Vegas, Nevada, commencing on MONDAY, the 27TH Day of
FEBRUARY, 2012 at 9:00 o’clock AM. This is a TWO week trial stack.
2. Counsel for all parties in the civil and criminal cases shall appear in Courtroom 6B on TUESDAY, the
21 day of FEBRUARY, 2012 at 8:30 AM for Calendar Call. Unless a party in a civil case ST or a defendant in
a criminal case is appearing pro se, the individual parties in civil cases and the defendants in criminal cases will
not be required to appear for Calendar Call unless the Court directs otherwise.
3. Counsel or their clients will be excused from Calendar Call if prior to the scheduled calendar call settlement
papers have been filed in a civil case or a defendant’s plea of guilty or nolo contendere has been accepted in a
criminal case.
4. At the Calendar Call, all cases that remain to be tried will be ranked in order of trial. Thereafter, the Court
will not grant a continuance to any party absent a showing of good cause. Unless the Court otherwise directs, the
cases will be tried one after the other on TWENTY-FOUR (24) HOURS’ notice from the clerk. 5. CHANGE
OF PLEA HEARINGS. Change of plea hearings will be set on Tuesdays immediately following calendar call. It
shall be the joint responsibility of counsel for the United States and for Defendant(s) to ensure that the original and
two copies of the plea agreement, together with a copy of the indictment, are delivered to Judge George’s
chambers by 4:00 p.m. on Monday, the day before the change of plea hearing. It shall further be the responsibility
1
of counsel for the United States to ensure that any necessary produce orders are timely delivered to the United
States Marshal to ensure the presence of all in-custody defendants for a change of plea, and to ensure proper
notification for the attendance of any court interpreter which may be required for the particular case.
6. STATUS HEARING. The Court may conduct a status conference prior to the scheduled Calendar Call. If
the Court is satisfied during the status conference that the case is ready for trial, the Court may vacate the Calendar
Call.
7. WITNESSES. Counsel shall immediately subpoena all witnesses for the time and trial date as listed above.
Inasmuch as the cases will be tried in a trailing fashion, the subpoenas should contain a special instruction from
counsel directing witnesses to contact the office of counsel for further instructions prior to appearing for trial.
Witnesses are not required to be present at the Calendar Call but must appear as subpoenaed.
8. EXHIBITS. At least three (3) court days prior to the commencement of any trial, counsel shall supply
Judge George’s courtroom deputy clerk with the ORIGINAL and 3 copies f a complete exhibit list of all
exhibits that are intended to be used during the trial. At the same time, counsel shall serve upon opposing counsel
a copy of the same. Plaintiff Numerals (1-500) shall be used to identify the plaintiff’s exhibits and Defendant’s
Numerals (501-1000) shall be used to identify the defendant’s exhibits. Exhibits that are on the same subject
matter may be marked as a series: that is, Plaintiff’s 1-A, 1-B, etc., and Defendant’s 501-A, 501-B, etc. The
exhibits shall be listed on the form to be provided by the clerk and pursuant to the instructions as shall be supplied
by the clerk. Counsel may use computer-generated exhibit lists so long as they conform to the requirements of the
form that is provided by the clerk. COUNSEL SHALL RETAIN POSSESSION OF THEIR EXHIBITS
UNTIL SUCH TIME AS THEY ARE IDENTIFIED AND OR ADMITTED INTO EVIDENCE BY
STIPULATION OR IN OPEN COURT; AFTERWARD, THE EXHIBITS SHALL REMAIN IN THE
CARE & CUSTODY OF THE CLERK/COURT, UNLESS OTHERWISE ORDERED BY THE COURT.
9. MARKING EXHIBITS. During preparations for trial, counsel for all parties shall meet, confer, pre-mark
and exchange all trial exhibits. At least three (3) court days in advance of trial, counsel in civil cases shall make
arrangements with Judge George’s courtroom deputy clerk to appear for purposes of confirming the pre-making
of all trial exhibits
10. Counsel wishing to utilize the court’s evidence display equipment must contact the courtroom deputy to
determine its availability and to arrange for training.
2
11. TRIAL JUDGE. Although the cases that are listed on the attached trial calendar are assigned to Judge
George, the cases may proceed to trial before another Nevada district judge or a visiting district judge.
12. CONSENT TO TRIAL BEFORE A MAGISTRATE JUDGE. Counsel and parties in civil actions are
reminded of their right to consent to disposition before a United States Magistrate Judge pursuant to Title 28,
Section 636(c)(2) of the United States Code. The right to proceed before a Magistrate Judge in a civil case
includes those cases that will be tried before a jury as well as those cases to be tried before the Court sitting
without a jury. Any appeal from a judgment in a proceeding before a Magistrate Judge shall be taken directly to
the United States court of Appeals. The option to proceed before a Magistrate Judge is available to the parties at
the time an action is commenced. The Court may refuse to approve a consent if it appears to be motivated by an
effort to delay the proceeding.
13. SANCTIONS. As provided for under the Local Rules of Practices of this court, the Court will consider
the imposition of sanctions against any attorney who: (1) fails to timely file trial briefs, suggested voir dire
questions and proposed jury instructions or proposed findings of fact and conclusions of law, whichever is
applicable, as prescribed by the Pretrial Order, Order Regarding Pretrial Procedure, Scheduling Order or any order
extending the time for such filings; (2) fails to comply with the provision of this order including, but not limited
to, the failure to appear for calendar call without first having been excused by the court or the clerk with the
permission of the Court; or (3) fails to timely comply with any other order that schedule deadlines for trial
preparation.
14. CONTACT PERSON. All questions and information regarding the trial calendar are to be directed to
JUDY HARRIS, Deputy Clerk, at 702-464-5438.
15. THE DATE of the Clerk’s file mark shall constitute the date of this order.
IT IS SO ORDERED.
/S/
LLOYD D. GEORGE
United States District Judge
Background Article:
It’s a bird.. it’s a plane..no, it’s a MERGER!
« Thread Started Today at 12:38pm »
——————————————————————————–
“We are not letting these regulatory matters impede our primary focus of creating stockholder value through the mining and development of our mineral assets”
——————–
YOU ARE NOW BOARDING UNITED AIRLINES. DESTINATION:
JOSEPH J. MEUSE. We will be making the following stops:
DTC
SEC
Jay Adobe’s
Cohne, Rappaport & Segal
Several JVs
and other company connections
Citadel
Robert D. Krebs
John Ed Dhonau
David Bending
Delta Airlines
Barry M. Meuse
We will be going through National Security and past defense.
Enjoy your trip.
——————————
Most of the information in this post stems from the following filing:
Ual Corp/DE · 11-K · For 12/31/07
United Airlines Pilot Directed Account Plan
First, go to the following website:
http://www.secinfo.com/d14D5a.t4cRs.htm
Once you are there, hit “Ctrl” and “F” on your keyboard.. you should now see above a “Find” box in which to enter an item you wish to search on that webpage.
Next, enter CMKM DIAMOND in the “Find” box.
[The above is for those who did not know how to find an item on a webpage. This will take you immediately to the item on the page]
Once you do that, you should see the following highlighted:
#REORG/CMKM DIAMOND GEN MERGER EFFEC 04-14-06
$ 22,876.58 $ —
Noticed the term, “REORG”. That could be for any number of reasons. Here, the following reason is stated after CMKM DIAMOND..
GEN MERGER EFFEC 04-14-06
Notice the date, 4-16-09. A date which was prior to Urban handing the reigns over to Mr. Frizzell:
LAS VEGAS–(BUSINESS WIRE)—On March 29, 2007, Urban Casavant stepped down as Chairman of the Board, sole Director, President, Secretary and Treasurer of CMKM Diamonds, Inc. “My health issues are forcing my resignation, but I believe that I have finally found the right man to take over at the helm”, stated Mr. Casavant. “Mr. West has proven his tenacity along with his care and concern for the shareholders of this company over and over again through an extremely difficult time.
Does the date, 4-16-06, ring a bell with anyone?
—————
CMKM DIAMONDS INC RR Cusip 125809103
http://www.sec.gov/comments/s7-08-08/s70808-107.htm
At the link above,you will find the “One Time Special Security Position Report ” from the Depository Trust Company.
Security Position Reports: One Time Special Security Position Report
Security Position Report Service Home Request Form Security Position Report
The Depository Trust Company
One Time Security Position Report
Position as of: 04/14/2006
Security Description
CMKM DIAMONDS INC RR
Cusip 125809103 Participant Quantity Participant Quantity Participant Quantity
0158 ADP COSI 37546 8072 ALPINE SEC 71918830 0188 AMERITRADE 4175625803
0442 ASSENT LLC 16400000 0773 BANC OF AM 5090000 0901 BANK OF NY 380953200
0352 BEAR STERN 13137000 0049 BNP PARIB 48020555 0010 BROWN BROS 906098500
0785 BROWNCOLLC 30882454 0732 BUTLERWICK 1766000 5099 CAN DEP 1140527151
5046 CANACORD 398978 5030 CIBCWRLD 954954096 0740 CITI/LMWW1 68000000
0908 CITIBANK 367857806 0418 CITIGROUP 2820908206 2012 CREST INTL 31315800
0715 DAVENPORT 18875000 0385 ETRADE 38594 0201 EDWARDS AG 179514
0371 ELARKIN CO 11960000 0608 FIMAT PREF 4267800 0141 FRST CLEAR 50423
5016 GMP SECS 1000000 0005 GOLDMAN 15200000 0501 GOLDMAN LP 220609225
5208 GS I’NATL 87198559 0756 HR BLOCK 179298350 0314 HG WELLGTN 1090000
5048 HSBCSECS 94022333 2132 IBT/IN CUS 5000000 7031 JAMESBLACK 2000000
0019 JEFFERIES 5000000 0374 JMS LLC 166756794 0902 JPMCBNA 21135000
5001 LAURENTI 12163000 0052 LEGENT LLC 14416044 0075 LPL CORP. 57462000
0650 MAN SEC 61900000 0287 MARSCO INV 1000000 0161 MERRIL 120859000
0472 MERRIMACK 500000 5198 ML SFKPG 128077617 0671 MLPCC/PAX1 2000000
0050 MORGAN STN 3000000 0015 MSDW INC. 1695107 0297 N AMER COR 22865530
0306 NBC SEC. 3425000 0226 NFS LLC 5333468551 2669 NRTHRN TR 5000000
0234 PENSON FIN 2153586698 5063 PENSON 991833377 0443 PERSHING 527
0311 PIPER JAFF 273873698 0701 PRIMEVEST 3000000 5076 RAYMOND 4905000
5002 RBC/DOMN 760097272 5962 RELIANCE 10000000 5029 RESEARCH 10842466
2039 SEI PRIVAT 5250000 0997 SSBT CO 43000000 2399 SSB/FRANK 23000000
0419 STEPHENS 4000000 0750 STERNE AG 115267768 0012 SWISS AME 337003049
5036 TD WATER 515401272 0221 UBS FINAN 712188547 0642 UBS SECLLC 156900000
0280 US BANCORP 40797940 0709 WACHTELCO 5000000 0733 WELLS LLC 3250026
0623 WM FRANKEL 713457 8082 ZIV INVSMT 40000
Total 23805356463
Page 1 of 1
https://login2.dtcc.com/SPR/browser/SPR_PositionReport.do 4/20/2006 / Amazing what Brokerage’s and their MM’s get away with, isn’t it Mr. Cox
——————-
Why do you suppose there was need for a security position report on that particular day?
Let’s take a look at that same date, but three years prior:
———–
Share Lockup Agreement
This Share Lockup Agreement (the “Agreement”) is entered into this ___ day of April, 2003 by and between Urban Casavant, an individual resident in the State of Nevada (hereinafter referred to as “Casavant”), Casavant Mining Kimberlite International, a Nevada corporation (“CMKI”), and Thomas C. Cook and Associates, Ltd., a Nevada professional law corporation (hereinafter referred to as “TCC”).
RECITALS
WHEREAS, Casavant currently is an affiliate of CMKI, by virtue of the fact that he is currently the president of CMKI and is the holder of record of six hundred million (600,000,000) common shares of CMKI, represented by certificate number 5171 (the “Shares”); and
WHEREAS, Casavant and CMKI believe that it would be in the best interests of CMKI and its shareholders for the Shares to be held in escrow for a period of time; and
WHEREAS, Casavant and CMKI have mutually chosen to utilize TCC as the Escrow Agent.
NOW, THEREFORE, Casavant, CMKI and TCC and hereby agree as follows:
1. Escrow of Shares. Casavant shall place the Shares directly into the custody of TCC. The share certificates shall not be released from the custody of TCC until three years pass from the date of execution of this Agreement (the “Escrow Term”). During such Escrow Term, Casavant hereby agrees that he will be unable to sell, transfer, pledge, hypothecate or otherwise dispose of the Shares. During the Escrow Term, Casavant will retain all other rights afforded to him as a shareholder of CMKI, including but not limited to the receipt of dividends when declared and voting rights.
2. Break of Escrow. Upon the expiration of the Escrow Term, TCC shall, within five (5) business days from the expiration of the Escrow Term, release to Casavant the Shares.
3. TCC Not Underwriter or Broker/Dealer. It is expressly understood and agreed by the parties that TCC is acting only in the capacity of an escrow agent, and therefore shall not partake in any activity which would cause TCC to be classified as an underwriter, a broker or a dealer as defined under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, or any other relevant federal or state securities law, rule, or regulation.
4. Amendment and Modification. Subject to applicable law, this Agreement may be amended, modified or supplemented only by a written agreement signed by Casavant, TCC and CRS.
ITEM 9. REGULATION FD DISCLOSURE
On April 15, 2003, Casavant Mining Kimberlite International, Inc. (“CMKI”) entered into an agreement with Urban Casavant, President of the Company, whereby Mr. Casavant agreed to place his shares of CMKI common stock in escrow for a period of three (3) years. During the period of time in which Mr. Casavant’s shares are in escrow, Mr. Casavant has agreed not to sell, pledge, or otherwise dispose of any of the shares placed in escrow. However, Mr. Casavant does retain all other rights afforded to him by virtue of owning the shares, including voting rights and rights to dividends and other distributions.Mr. Casavant’s shares are being held in escrow by the Law Offices of Thomas C. Cook, Ltd.
http://knobias.10kwizard.com/contents.php?ipage=2118891&rid=12&back=1 CMKM DIAMONDS, INC. 8-K filed on 04/25/2003
The rest of this Share Lockup Agreement can be read at..
http://knobias.10kwizard.com/filing.php?….ECTION_BODY&exp
April 16, 2003 is exactly 3 yrs after the Share Lockup Agreement.
Coincidence? Perhaps. But I think there is someone who knew other than Urban, lawyers and the companies who were involved in said “merger”.
Jay Adobe’s post dated April 6, 2006.. just 10 days before the “merger” date.
By: jay_adobe
06 Apr 2006, 11:24 AM EDT
Msg. 186589 of 186894
(This msg. is a reply to 186557 by velvet172.)
Jump to msg. #
velvet,
I think the actual amount of shares publicly stated to be locked up through that agreement, plus the FS, is fairly insignificant to the overall count for the task force. However, the significance of locked up shares when one is dealing with privatization or buyouts or mergers or creations of conglomerates obviously is very significant to the final outcome of those transactions.
Here’s an example: Mr. car dealer has a car for sale, but the engine is being repaired at the local mechanic shop. You have agree to buy the car on the 15th of April, but the mechanic will not release the engine until midnight plus one minute(12.01 a.m.). The money is already committed for the purchase, and all you have to do is call the FED bank and authorize release of the car payment when the engine is delivered. Surely the FED bank will not release the funds to the car dealer until all parts of the car are in one place which then closes the transaction.
http://ragingbull.lycos.com/mboard/memalias.cgi?board=all&member=jay_adobe
April 15th, “plus one minute” brings us to 4-16-06, when Urban was able to release his “car”.
On April 17, 2006, Jay Adobe wrote..
“Amazing that the level of confusion and chaos has grown here.”
http://ragingbull.lycos.com/mboard/boards.cgi?board=CMKI&read=204730
——–
Jay Adobe’s post of April 06, 2006 was one day after this notice from the DTC’s REORG department:
The Depository Trust Company
IMPORTANT
B#: 9516-06
DATE: April 05, 2006
TO: All Participants
CATEGORY: Reorganization
FROM: John Carvalho, Operations Division
ATTENTION: Cashiers and Reorganization Managers
SUBJECT: Distribution of 50,000,000 Common Shares of Entourage Inc.
Upon Surrender of CMKM Diamonds Inc. Common Shares
On November 17, 2005 participants were advised via The Depository Trust Company’s (DTC) Reorganization Inquiry for Participants (RIPS) envelope ID 93-125809103-01 that according to CMKM Diamonds, common shares of Entourage Inc. would be distributed to ” bona fide” holders of CMKM Diamond shares upon physical presentation of CMKM Diamond Inc. shares to the CMKM Diamonds Task Force established to handle the distribution.
As per CMKM, this action requires that participants with shares
of CMKM Diamonds Inc. on deposit at DTC submit withdrawal by transfer instructions (WTs) to have the shares registered accordingly for presentation to the Task Force. A deadline of December 31, 2005 was initially established by CMKM for the presentation of the certificates. Participants are advised to refer to the RIPS envelope for more details concerning the distribution.
The deadline for the presentation of the CMKM Diamonds certificates has since been extended by CMKM to 5:00 PM PST May 15,2006. However, in order to ensure sufficient turnaround time for WTs submitted to the transfer agent, DTC plans to chill WT activity on April 14. Although DTC will continue to provide
Direct Mail by Depository (DMD) services to participants for WTs submitted by April 14, all CMKM items in the “hold” feature of DMD after that date will be forwarded directly to participants.
After April 14, DTC will commence exiting any certificates remaining on deposit. The certificates will be submitted to the transfer agent with instructions to issue CMKM Diamond Inc. shares in participants’ name or their nominee name as applicable.
Upon receipt of the shares DTC will make a secure delivery of the shares to each participant. Participants with questions regarding this notice can contact their Relationship Manager or the undersigned at (212) 855-3660.
http://www.dtcc.com/downloads/legal/imp_notices/2006/dtc/reo/reo_9516-06.pdf
—————–
In the item #4, from the Share Lockup Agreement, it states the following:
4. Amendment and Modification. Subject to applicable law, this Agreement may be amended, modified or supplemented only by a written agreement signed by Casavant, TCC and CRS.
What or who is CRS?
———–
Someone had brought that to my attention recently.. As most of you know, TCC is Thomas C. Cooke. It seemed to stand to reason that CRS might be a law firm as well.
Cohne, Rappaport & Segal, P.C. is a law firm large enough to handle major transactions and litigation matters, yet small enough to provide personal service to its clients.
Cohne, Rappaport & Segal, P.C. is centered in Salt Lake City, Utah. Salt Lake City is the commercial hub of the Intermountain West. The firm provides regional representation throughout Utah and the Intermountain west for both local and national clients.
The firm’s practice and its clients are diverse. Cohne, Rappaport & Segal, P.C. has developed strong expertise in:
Bankruptcy and Insolvency;
Commercial Litigation;
Employment Law and Civil Rights Litigation;
Family Law;
Real Estate and Real Property Development Law;
Transactions and Securities Law;
Criminal Defense Law and Related Administrative Proceedings, State and Federal, Adult and Juvenile
In each of its areas of practice, Cohne, Rappaport & Segal, P.C. has established integrated teams of professionals to assure that all aspects of its client’s needs are efficiently and effectively handled.
Cohne, Rappaport & Segal, P.C. has maintained a stable presence and a dynamic practice for more than twenty-five years. The firm takes great pride in the long-term allegiance of its clients and endeavors to promote continuity in its services.
Cohne, Rappaport & Segal, P.C. strives to provide exceptional quality, cost-effective legal representation for each of its clients no matter how large or small the client, or how complex the problem.
http://www.crslaw.com/about.asp
Business Services: Mergers and Acquisitions
Business of all types and sizes are generally faced, at least once in their existence, with difficult decisions relating to mergers and acquisitions (“M&A”). Cohne, Rappaport & Segal can assist corporations, partnerships, limited liabilities companies and their owners and management in planning for, developing and completing M & A transactions. M &A transactions and considerations arise for a variety of reasons and in a variety of circumstances. A company may be a buyer or seller in an M & A transaction. Companies frequently attempt to grow through acquisitions of competitors. Companies sometimes decide that diversification of Company operations is in the long term best interest of the Company and its shareholders. The owners of privately held companies frequently want to develop an exit strategy to enable them to maximize their capital investment or sweat equity. Public companies sometimes are faced with unwanted buyout situations which must be dealt with in an expeditious manner.
M & A transactions involve a variety of legal and business ramifications including corporate law issues, securities law issues, tax law issued, anti-trust issues and specific legal issues which relate to each industry.
The Firm has been involved in numerous M & A transactions representing buyer and sellers and publicly-held as well as privately – held companies. The Firm is able to assist its clients in many M & A transactions, including:
Corporate Governance advice
Asset or Stock Sales and Purchases
Mergers
Tender Offers
Leveraged Buyouts
Joint Ventures
Recapitalization
Proxy Maters
Advance Preparation for Prospective Takeover Targets
Spin Offs
The Firm has worked on M & A transactions for companies engaged in a variety of industries including, healthcare, natural resources, personal services, financial services and high tech ventures.
The Business Law Section is supported by the Firm’s Real Estate, Employment Law, Bankruptcy, Estate Planning and Litigation Sections to provide the Firm’s business clients with full service legal representation. The Firm also utilizes the expertise of other professionals on an “as needed” basis in representing its business clients.
Attorneys practicing in this field:
Ray M. Beck, A.O. Headman, Jr., Daniel J. Torkelson
http://www.crslaw.com/viewbservices.asp?View=9
Ray M. Beck
Email: ray@crslaw.com
Business Practice Areas: Business Formation and Planning, Mergers and Acquisitions, Probate Planning, Real Property
Individual Practice Areas: Business Formation and Planning, Probate Planning, Real Property
Ray M. Beck, born Salt Lake City, Utah, July 4, 1957; admitted to bar, 1983, Utah and U.S. District Court, District of Utah; United States Claims Court; U.S. Tax Court; U.S. Claims Court. Education: Brigham Young University (B.S., with honors, ### laude, 1980) with a Bachelor of Science Degree in Economics; J. Reuben Clark Law School (J.D., 1983). Board Member, Journal of Legal Studies, 1982-1983. Author “Creditor’s Rights in Bankruptcy,” Brigham Young University Journal of Legal Studies, 1983. Member: Salt Lake County Bar Association; Utah State Bar (Member, Real Property, Estate Planning and Tax Section). Language: German. Real Estate, Corporations, Estate Planning, Taxation. Mr. Beck has been associated with the law firm of Cohne, Rappaport & Segal, P.C., where he is presently a shareholder and member of its Board of Directors.
Mr. Beck’s practice focuses on tax-sensitive business transactions, commercial real estate development and estate planning. His transactional practice has included representation of clients in mergers, acquisitions and divisions, stock and asset purchases or sales, compensation planning as well as general entity governance and regulation. In particular, Mr. Beck’s practice has focused on advising his clients relative to like-kind, tax deferred exchanges as permitted under § 1031 of the Internal Revenue Code. Mr. Beck has participated in hundreds of such transactions, is a frequent lecturer on the subject and has served as an expert witness. In addition, Mr. Beck has represented his clients before various regulatory bodies, including the Internal Revenue Service and the Utah State Tax Commission. He is licensed to practice before the United States Tax Court and the United States Claims Court. Mr. Beck’s clients have included professional corporations, service providers, various real estate entities and electrical co-generation facilities. He has also assisted non-profit entities in their formation, governance and representation before applicable regulatory agencies.
Mr. Beck has served as chief counsel in the acquisition, financing, development, exchange and/or sale of large real estate developments including large shopping centers, apartment complexes, office warehouses and land bank assemblages. His clients have included national real estate investment trusts, regional development companies, private real estate holding entities as well as local developers and contractors. He has represented both institutional lenders and borrowers relative to the acquisition, development and sale of commercial and agricultural property. Mr. Beck has served on the planning and zoning commission in the city where he resides.
Mr. Beck’s estate planning practice emphasizes wealth transfers on a tax wise basis through the use of testamentary and inter vivos trusts, family limited partnerships and limited liability companies, etc. He has represented large estates before the Internal Revenue Service in the preparation and audit of estate and gift tax returns.
—————-
I have not verified as to whether or not this is the same CRS as written in the Share Lockup Agreement. However, Cohne, Rappaport & Segal is the only law firm I have found googled under the initials, CRS.
——————-
Now, let’s go back to the UAL filing.
You might find it interesting to note that the following companies, besides CMKM Diamonds, are listed as well:
Newmont(Shore Gold)
JNR Resources
Lundin Mining
DeJour Enterprises
Dennison Mines
Shore Gold
Conversion Solutions Holdings Corp.
Broadband Wireless(tied to Michael Williams who was friends with Maheu)
Talisman Energy(tied to Broadband, Lundin)
Hunt Gold Corp(FFGO has a 48% stockholding in Hunt Gold)
Consolidated Abbadon Resources Inc.(JVd with IUC)
BHP Billiton
Anglo American
Teck Cominco
Conoco Phillips(rumored to be working in connection to us)
Force Protection(ties.. I DDd several yrs back. Patrick Byrne mentions them as well, and speaking of overstock, they are on the list as well)
Titan Uranium
Cameco
(has a JV with Pitchstone and Pitchstone with Dennsion/Shore Gold aquired Cameco’s short interest in the FALC)
Miranda Gold Corp(through Ian Slater..Lundin Mining, Cornerstone Capital, Fortress Minerals)
Barrick Gold Corp(affiliate of Minera Nevada&CMKM at American Mine/Minera Nevada..Dhonau)
Silver Wheaton Gold Corp(tied to Mercator, Barrick; Silverstone)
Capstone Mining Corp(tied to Silverstone)
War Eagle Mining(Lundin)
Fortuna Mines(see Larry Dyck of Evolving Gold)
Suncor(Eira Thomas is a director who is a director of Fortress Minerals, Intl Uranium Corp, Dennsion Mines, Lucara and Santoy..which is also on the list)
FreePort McMoran Copper & Gold
Titan Uranium Exploration(part of Fortress Minerals Group)
Unicorp Inc..Striker Oil & Gas(Urban
UR Energy(James Franklin is director of Spider Resources, which is tied to Mousseau Tremblay. James Franklin is the chair of UR Energy)
Santoy(Ron Netolinsky..Skeena..Shore Gold)
—————
Citadel is a large stake holder in UAL
UAL got its boost form Ken Griffin’s Citadel Investment Group, which said it raised its stake in the company to 7.07 million shares, or 4.85%, from 900,666 shares at the end of the first quarter, Dow Jones Newswires reported.
http://www.investors.com/NewsAndAnalysis….source=Newsfeed
Kenneth Griffin is the founder and CEO of Citadel
http://www.viswiki.com/en/Kenneth_C._Griffin
Citadel is a major holder of Etrade
http://www.finalternatives.com/node/8842
———
Robert D. Krebs is a director of UAL.
He has also been the director of Phelps Dodge from 1987-2006. Crawford Lake Property was to be acquired from Phelps Dodge. Crawford Lake is a subsidiary of Dennison Mines.
http://www.wise-uranium.org/ucden.html
Btw, CMKM Diamonds is also on the Phelps Dodge employee savings plan(2004), as well as CIM. It is a much shorter list than UAL’s. You won’t find many of the aforementioned companies from the UAL on that list. However, you will find Juina Mining and US Canadian Minerals. You’ll even find Knight Trading Group. Universal Express is on the Phelps Dodge list as well.
Phelps Dodge Corp · 11-K · For 12/31/04
Phelps Dodge Employee Savings Plan
http://www.secinfo.com/dsVs6.z1ej.htm
Phelps Dodge is JVd with Cornerstone Capital Resources. Our ties to Cornerstone has been laid out previously in a post I did several years back.
Mr. Krebs has also been the director of Santa Fe Pacific Gold since 1991.
Santa Fe Pacific Gold Corporation completed a merger transaction, pursuant to which Santa Fe became a wholly owned subsidiary of Newmont Gold Company, a principal subsidiary of Newmont Mining Corporation. Previously, Santa Fe Pacific Gold Corporation was engaged in the mining and processing of gold ores; and the exploration and development of gold properties. The company was also engaged in the exploration and evaluation of precious metal properties and prospects elsewhere in North America, South America, central Asia, west Africa and the southwestern Pacific region.
http://investing.businessweek.com/busine….rivcapId=331264
As you probably already know, Shore Gold is JVd with Newmont.
Homestake Mining, interestingly enough, tried to acquire Santa Fe Pacific Gold..however, Newmont Mining got in there and the rest of the story can be read at..
http://www.journalofaccountancy.com/Issues/2009/Aug/WhiteKnight
What is so interesting about Homestake Mining? Only that there are 3 people on the board of Evolving Gold who also are tied to Homestake. If you are not familiar with Evolving Gold.. you might want to read up on their some of their team members at…
http://evolvinggold.com/wp-content/themes/zen-min/our-team.php
and from there.. well, there is the famous Bermuda Shorts sting.
And remember David Bending?
from CMKM Diamonds/Inc · DEF 14C….
David Bending, President and Chief Operating Officer (effective upon the Juina Mining Corporation merger).
Mr. Bending was appointed to act as the Company’s President and Chief Operating Officer. David A. Bending M.Sc., P.Geo. has 25 years of experience in mineral exploration and mining worldwide with emphasis on the Americas. He has a M.Sc. in Economic Geology and Geochemistry from the University of Toronto and a B.Sc. (Geology) from the University of Oregon. His career in exploration and management includes three years with Texasgulf Exploration, fourteen years with Homestake Mining Company and eight years in successful consulting and management of junior mining companies. He has been responsible for kimberlite and diamond discoveries in Canada and Brazil and metallic mineral deposits throughout the Americas. He currently manages a geological consulting practice based in Reno, Nevada, with clients and projects throughout the Americas. He is fully conversant in Portuguese, Spanish and French in addition to English and is familiar with mining law, mining development trends and business practices throughout the Americas.
http://www.secinfo.com/d123Y7.2d.htm
David Bending was also President of Juina Mining..
12/31/02: “David Bending, president of Juina Mining Corporation, is a nominee for president of CMKI, which will be among the matters to be considered at the AGM…. The South American diamond fields are expected to be a major source of income for the company.”
http://www.livewxradar.com/modules.php?name=Forums&file=viewtopic&t=12
Again..Juina Mining was is on the Phelps Dodge company list.
Gary Simmerman was employed by Santa Fe Pacific Gold. He is on Mercator Minerals board, as well as Robert J. Quinn who happens to be on Great Western Minerals’ board as well. He is also counsel for Hecla Mining(which is also on the Phelps Dodge Employee Plan).
Santa Fe Pacific Gold may also have ties to John Ed Dhonau.
———–
Dhonau was with Stoecklein in Voyager..
http://edgar.brand.edgar-online.com/EFX_….fwdMWe9tsQU8zd7
Dhonau and Stoecklein in PBS Holdings..
http://www.secinfo.com/$/SEC/Registrant.asp?CIK=1077150&View=Names&List=N#Names
Dhonau as signatory with Crystallix…
http://www.stocks-reporter.com/index.php/forums/viewthread/713/
Dhonau is a large shareholder in Crystallix…
http://www.secinfo.com/dsV36.z4r.htm?Find=CMKXtreme#56thPage
Crystallix tied to Maheu through Kevin Ryan, Robert McDermott
———–
US Canadian Minerals owned a majority interest in Durango Oro, S.A., Compania Minera with offices located at Circunvalacion Norte, #511, Machala El Oro, Ecuador. Such offices are shared with Santa Fe Mining Company, S.A., an Ecuador company in which we own 80%. Sante Fe owns the mineral processing plant and land known as “Buza”. In 2005, the Company did not have managerial control of Durango Oro. A mineral processing plant, known as Durango I, was operated by Durango Oro in Ecuador. In 2005, the Company acquired another mineral processing plant known as Durango II. The Durango I was operational at the time on-site auditing field work was completed in Ecuador in May, 2006. At September 30, 2005, these processing plants were wholly owned, but not controlled, by the Company, and are investments rather than subsidiaries.
John Edgar Dhonau, who beneficially owns a majority of the Company’s(US Candian Minerals) common stock owns all of and controls Nevada Minerals
http://biz.yahoo.com/e/070326/uscn.pk10qsb.html
Again, US Canadian Minerals is on the Phelps Dodge Employees Company plan.
Santa Fe Pacific Gold is linked to Santa Fe Mining..
http://www.secinfo.com/dRqWm.895b.d.htm
Trilliant acquired shares of AyapampaGold. AYA had acquired assets and liabilities of Santa Fe Mining Corporation.
Trilliant acquired assets of Santa Fe Mining S.A. for the total purchase price of One Million Six Hundred Thirty One Thousand Eight Hundred Forty Four U.S. Dollars ($1,631,844).
Trilliant Diamond Limited purchased10 Million (10,000,000) Shares of Global Diamond Resources PLC for the total purchase price of One Million Five Hundred Thousand Pounds Sterling (£1,500,000).
http://www.secinfo.com/d12TC3.s1awz.htm
John Ed Dhonau is on the board of Global..
http://www.gbglobalminingag.com/leadership.php
Btw, Andrew Befumo is listed as Secretary of Trillant…
https://esos.state.nv.us/SoSServices/AnonymousAccess/CorpSearch/CorpDetails.aspx?lx8nvq=YdAMlAavcTCYh1%252bvsJLu0Q%25 3d%253d
Andrew Befumo was also an employee of Belmont Partners as general counsel..
http://www.slideshare.net/netgenpr/trilliant-exploration-overview
http://www.reuters.com/article/pressRelease/idUS105876+21-Mar-2008+BW20080321
And you probably remember, Joseph Meuse owns Belmont Partners and is President of Pacific Stock Transfer, our transfer agent.
Joseph Meuse is son of Major Barry Meuse. Barry Meuse is CEO of Imperial Petroleum Recovery Corp.
On January 1, 1996, Imperial Petroleum acquired NSA Inc. (NSA), a management and consulting firm located in Alexandria Virginia.
Effective January 1, 1996, the Company acquired 100% of the outstanding common stock of National Security Analysts, Inc. (NSA), a Washington, D.C., based management consulting firm, in exchange for the issuance of 750,000 shares of common stock valued at $3,000,000, based upon the value associated with other stock transactions.
Barry M. Meuse became chief executive officer of the Company in July, 1995. Mr. Meuse founded NSA, Inc in 1986 to provide a private sector perspective on national security issues involving the Department of Defense, the National Guard Bureau, and the Air Force Reserve. He has more than 30 years’ experience in national security issues including development of defense policy and strategy, long-range planning, joint and combined air operations, operational plans, force structure analysis, test and evaluation, and air crew training. Mr. Meuse received a Bachelor of Science from the Air Force Academy in engineering in 1963 and a Master of Arts Degree in International Relations from the University of Arkansas- European division in 1974.
Henry Kartchner has been the chairman of the board of directors of the Company since December, 1995. Mr. Kartchner has extensive international business experience, particularly in the Middle East. Since 1975, he is the founder and has been chief executive officer of Food Development Corporation (FDC), an international agro-business. Under his leadership, FDC grew to become an international concern with annual revenues in excess of $50 million.
Brent Kartchner has been a vice president and director of the Company since September, 1995. With his father Henry, he has managed and directed the activities of Food Development Corporation from its headquarters in Pasco, Washington. Mr. Kartchner’s hands on supervision provided the direction to complete several desert lands reclamation projects in the Middle East. Mr. Kartchner received a Bachelor of Science degree in Agronomy and Business Management from Brigham Young University in 1971.
Larry Taylor has been vice president of marketing and a director of the Company since September, 1995. He has broad experience in international business and marketing. Mr. Taylor was vice present of marketing for JA Jones Construction, an international construction company from 1990 to 1993. From 1993 to present, Mr. Taylor has been self employed as an international business consultant. Mr. Taylor received a Bachelor of Science degree in engineering from the University of North Carolina in 1970.
William E. Ardern is a vice president of NSA and has worked for NSA since 1988. As chief of the Air Force’s F-16 Management Office and chairman of the F-16 Multinational Operations Subcommittee, Mr. Ardern managed the introduction of a major weapons system into the US arsenal and into the air forces of four European nations. At NSA, Mr. Ardern directed the Air National Guard Operations Desert Shield/Desert Storm Lessons learned project and is the project director for Air National Guard acquisitions support. He currently heads NSA’s Tucson office and is the Company’s chief analytical services provider for its contract with the city of Tucson. Mr. Ardern received a Bachelor of Science in engineering from the Air Force Academy in 1963 and a Masters of Science in business/systems analysis in 1971 from the University of Rochester.
Michael Weppner is executive vice president of NSA and has been with NSA since 1986. He has 28 years of military and defense program experience including fighter operations and command, F-100 combat experience, interceptor pilot training, operational test and evaluation, and an Air Staff tour. While at the pentagon, Mr. Weppner served as the Air Force Plans and Operations focal point for development of several $100 billion budgets. In addition, he has managed congressional issues, operational requirements assessments, and Air Force Wide Mission Area Analysis. Since 1986, Mr. Weppner has worked for NSA as program director for the National Guard Bureau contract. He developed the highly successful airspace long-range planning system used by the Air National Guard to address operational and environmental airspace issues, a process which is evolving into the mechanism by which all US military services coordinate airspace and range planning. Mr. Weppner received a Bachelor of Science degree in aeronautical engineer from Notre Dame in 1965 and a Master of Science degree in aeronautical engineering in 1975 from the Air Force Institute of Technology.
Joseph Meuse . Mr. Meuse worked part time as an accounting and finance and business development specialist for NSA since 1988. Mr. Meuse received his Bachelor of Science degree from William and May in 1993.
http://tinyurl.com/ly9r7u
———
Barry Meuse is also with Delta Airlines.
Barry Meuse
at Delta Air Lines, Inc.
1030 Delta Boulevard
Atlanta, GA 30354-1989
rumor of UAL Delta merger
http://www.reuters.com/article/ousiv/idUSN1436355220071115
In 1998, Delta and United Airlines introduced a marketing partnership that included a reciprocal redemption agreement between SkyMiles and Mileage Plus programs and shared lounges.[25] This scheme allowed members of either frequent flier program to earn miles on both carriers and utilize both carriers’ lounges. Delta and United attempted to introduce an even cozier codeshare relationship, but this was deal was effectively killed by ALPA.[26]
http://en.wikipedia.org/wiki/Delta_Air_Lines
—————-
More Barry M. Meuse and Joseph J. Meuse connections..
ST GEORGE METALS INC – Current report filing (8-K) Item 1.
Barry M. Meuse (60):
From July 2001 to present, CEO and Chairman of the Board of Directors, Network Resource International, a privately-held company engaged in installing high-speed data communications
networking solutions. From 1985 to present, CEO,
Chairman, and President, National Security Analysts
Incorporated (NSA Inc.), a Virginia corporation
headquartered in Alexandria, Virginia, specializing in management consulting and a provider of technical support services to federal and state
government and US and international aerospace and defense companies. Also, from 1995 to present,
Managing Director, Castle Capital Partners, LLC, Alexandria, VA, a Delaware limited liability company specializing in business and management consulting including finance and business planning.
Meuse is a decorated combat veteran has served, from 1963 to 1985, in the US Air Force in the U.S., Europe, and Asia as a fighter pilot, staff officer, strategist, and educator. Mr. Meuse
retired from the Air Force in the grade of Colonel.
MS, International Relations, University of Arkansas
(European Division); BS, Engineering Sciences, United States Air Force Academy; Industrial College of the Armed Forces, National Defense University; and Distinguished Graduate, Air Command and Staf College, Air University.
Barry Meuse is CEO and chairman of Hunter Aircraft:
http://www.encyclopedia.com/doc/1G1-19262531.html
ALEXANDRIA, Va.–(BUSINESS WIRE)–December 10, 1996–Hunter Aircraft announced today that it has completed the acquisition of Neptune Aviation Equipment & Facilities Inc., an airline services company. With the acquisition of Neptune as a wholly-owned subsidiary, Hunter Aircraft Corporation expands its aircraft design and manufacturing business to include aviation services and support.
Neptune currently has 185 employees providing services for several major airlines, including Delta, Continental, and United, in 8 cities
http://www.encyclopedia.com/doc/1G1-18925033.html
—————–
Joseph J. Meuse:
From August 2001 to present, Chief Financial Officer and Vice President, Finance, Network Resources International. From 1995 to present, Managing Director, Castle Capital Partners LLC,Alexandria, VA, a Delaware limited liability company specializing in business consulting including finance and business planning. From 1993 to 1995, Mr. Meuse was an investment executive with Legg Mason Wood Walker, Bethesda, MD, providing financial management services (Series 7 and 63). BS, Finance, Accounting minor, College of William
and Mary, Williamsburg, VA, 1993.
http://www.secinfo.com/d12crf.34r.htm
http://www.menafn.com/qn_news_story.asp?storyid=%7B1ba71db1-0aa3-4eea-926f-090c267979a8%7D
It’s a strange case!
Fred I believe you posted the great video about Patrick Bryne and Overstock
Have you seen this headline today?
Overstock.com Nears Default While Utah Media Sleep
October 31, 2011
http://seekingalpha.com/article/303750-overstock-com-nears-default-while-utah-media-sleep
Stock Promoter’s Lawsuit Shuts Down U.S. website
‘Defamatory’ allegations
By John Colebourn, The Province October 23, 2011
A Vancouver stock promoter has managed to get an injunction to shut down a conspiracy website in the U.S. that linked him to Osama bin Laden and members of the Mafia.
Altaf Nazerali filed a defamation suit against Patrick Byrne and journalist Mark Mitchell in B.C. Supreme Court over the material published on the website deepcapture.com.
The injunction to stop the website was granted Oct. 19.
snip
Other defendants are GoDaddy Inc, which registered the deepcapture.com domain name, and NoZone Inc. ,which hosts the website.
Also named in the suit are searchengine provider Google and its Canadian subsidiary, which publishes a list of links to the defamatory statements. jcolebourn@theprovince.com
Read more: http://www.theprovince.com/news/Stock+promoter+lawsuit+shuts+down+website/5594043/story.html#ixzz1cQ51DLsL
Hmm
intrigued, Deep capture is temporally down till Dec 2, Some crooked dealer got a BC judge to take it down because he didn’t like his name being shown on the crooks list…
inflammatory comments are pretty common on the internet, I guess
the court will get a copy of the whole website as evidence, nice…
Pat and Matt will have it back up if need be
and a chance to totally redo the site….
Oh… I forgot to add the link:
http://www.deepcapturethemovie.com/
enjoy
excellent fred..i think it deserves its own post..
if your really missing the site, I have a consolation prize for you…
http://web.archive.org/web/20110724072230/http://www.deepcapture.com/
Thanks for the links fred… amazing how these criminals in the ‘un’justice department are truly showing their colors. Probably the most corrupt branch of every government, is the court system- go figure!
fred…..no wonder they took down the site….OMG…I just tied up some loose ends I have been working on all day, regarding the MF Global stock…and this is nothing short of high treason, no matter how they want to whitewash it! My research actually had nothing to do with the CMKM Diamonds, but something else. (Although, I will say one thing, diamonds will probably be worth more than gold in the future, for more reasons than one. Energy…being the biggest reason.)
Hell, the global warming, climate change scam in my opinion now, is just something of a ‘front’. Something to distract us all, imo.
And why are the same criminals always at the forefront?
holy batchit, robin!
its postworthy for sure
http://divinecosmos.com/start-here/davids-blog/988-fulford-owo-defeat
Hey Mods! Let David know this one.
One of my patients just left my office. He works for MF Global. That’s a major player in the Commodities Markets. He told me the company went bankrupt this morning and that the feds were in his office all day.
Agents from his company were locked off the floor of the Chicago Mercantile Exchange. He said that meant 40% of all the traders on the CME floor were barred from entering today and will probably be barred from doing so tomorrow.
How long they are kept off the trading floor depends on what the Feds do and if they can find a buyer for their division.
The bankruptcy occurred because their CEO or COO (or whatever) took the company’s debt ration from 6::1 to 40::1 by buying junk bonds, etc, especially from Europe.
He will not be paid for at least 6 weeks while this is worked out. He was madder than a wet hen and said, “The Federal Reserve has to go.”
I checked out the local financial news and it is not even in the newspapers yet. The crash seems to be beginning. Here we go!
I will say one thing…CHICAGO is HUGE in this mess.
It’s probably one of a couple reasons why Rahm had to come home and play mayor. I sure hope he isn’t planning on eventually playing the part of the New York Mayor Giulianni in the very near future…we don’t need any re-runs, nor will Americans believe it again. (did I mention there was a small package that exploded today at O’Hare airport? I guess those kinds of stories have been happening so often in Chicago over the past year or so, that they are supposed to mean something down the road? A Level 1 hazmat response was ordered, but, NEVERMIND, it was ‘probably’ just an accident they said….. we have had so many little ‘accidents’ and mishaps and false alarms this year…. interesting though, if you run a red light here, the newspapers put your name in their Police Blotter list, so all of your neighbors know what you did, but none of these little accidents caused by these mysterious people ever have their names listed.
http://www.foxnews.com/us/2011/11/01/small-explosion-reportedly-injures-1-at-ohare-airport/
I think our politicians, some of our military leaders, especially one general in particular, but there are plenty more, and all of ex-Presidents should be labeled junk…and kept off the payroll and decision making process forever….. a nice cold jail cell for them and their religious leaders sounds good to me.
What the rest of the world does with their junk, is their business, but junk is junk, it comes in all styles and forms of worldly leadership, and is not unique in America. As a matter of fact, I would say Europe holds the market on junk ‘kings’ !
Mafia Takes Over Publicly Traded Company
By Loren Berlin Posted 6:05PM 11/01/11
snip
criminals in the boardroom, actual thieves — including men associated with the mafia — have spent years quietly running FirstPlus Financial Group (FPFX), a Texas-based company and a one-time subprime lender that boasted former Vice President Dan Quayle as a board member, and used NFL Hall of Famer Dan Marino in its ads.
“Criminal activities have evolved from the back alleys to the board rooms,” said Michael B. Ward, special agent in charge of the FBI’s Newark Field Office. Still, the tactics remain the same, he says: “physical threats and intimidation to gain leverage and loot lucrative businesses.”
http://www.dailyfinance.com/2011/11/01/mafia-takes-over-publicly-traded-company/
and why wouldn’t we see this type of headline coming? WE DID! Our leaders always seem to fall back on the mob don’t they, when they are caught with their hands in the cookie jars, especially in the ‘Texas’ area….
Chicago will probably be getting really really ‘windy’ soon, if they are going to use the old ‘mob’ routine again. Hell, someone should tell them, that we already knew the mob has moved from the boardrooms to the White House long ago. Even before the mysterious so called Chicagoan, Barack Obama came into office!
VANCOUVER, B.C. (CN) – A penny stock promoter claims former Columbia Journalism Review editor Mark Mitchell and Overstock.com CEO Patrick Byrne defamed him in an Internet report that linked him to al Qaeda. A judge ordered the website shut down, The Province newspaper reported.
Altaf Nazerali claims that Mitchell and Byrne falsely portrayed him as a criminal, an arms dealer and a drug dealer with links to terrorist organizations, on the deepcapture.com website, which is “principally authored” by Mitchell.
Nazerali says the defamatory report was part of the defendants’ crusade against illegal short selling. The Internet posts also falsely accused him of running fraudulent pump and dump schemes and other market manipulations, Nazerali says in his complaint in British Columbia Supreme Court.
Nazerali says the Deep Capture website is run by Mitchell and Byrne and aims to expose “wrongdoing and unsavoury individuals in the stock and financial markets.”
He claims that several “chapters” on the site, written by Mitchell or Byrne, mentioned him by name and falsely linked him to Al Qaeda, Osama Bin Laden, the Pakistani intelligence service and the Russian Mafia.
“The defamatory statements were motivated by express malice of the defendants Mitchell and Byrne, arising from the known publication of falsehoods, continued publication of falsehoods after notification of their falsity, and the treatment of the plaintiff as an ‘enemy’ in the campaign led by Byrne and Mitchell to seek revenge on people they believe, falsely in the case of the plaintiff, to have engaged in illegal short selling,” the complaint states.
Defendants include Deep Capture LLC, High Plains Investments LLC, Godaddy.com., Nozone Inc. dba Steadfast Networks, Google and Google Canada Corp. Google was accused of providing links to the defamatory content.
The Province newspaper reported that a judge granted an injunction, shutting down the website, on Oct. 19, the day the complaint was filed.
The website appears to have been stripped of all its content.
Nazerali is represented by Daniel Burnett with Owen Bird Law Corp.
Google deepcapture.com and view cached view…
The SEC Learned Nothing from Madoff — Check Out CMKM Diamonds, Inc., for Proof
November 24, 2011 at 12:49:53
By CMKM Information
As the recent article “SEC Builds New Tips Machine to Catch the Next Madoff” suggests, the Securities and Exchange Commission (SEC), a longtime poster child for the rampant political cronyism and crony capitalism in the US, appears to have corrected the mistakes it made in the Madoff debacle and is currently implementing an efficient new system to handle the tips and complaints it receives concerning potential frauds.
But unfortunately for the rest of the investors the SEC is mandated to protect, the SEC only appears interested in correcting its past mistakes and implementing changes after it has been exposed as being indisputably grossly negligent and seemingly criminally complicit, and therefore is subsequently forced to change, as was the case in the Madoff debacle.
Otherwise, the SEC only seems interested in engaging in political cronyism and crony capitalism and in covering up for its indisputable gross negligence and seeming criminal complicity (hereinafter collectively referred to as “business as usual”).
And unfortunately for the shareholders of CMKM Diamonds Inc. (CMKM), it was business as usual for the SEC and SEC Enforcement Division Attorneys, John M. McCoy, Molly M. White, and Leslie Hakala (hereinafter collectively referred to as “SEC Attorneys”) as evidenced by the failure of the SEC and SEC Attorneys to investigate questionable allegations and to disregard the findings of their own investigations and a red flag, all of which caused the alleged pump and dump fraud of the previous CMKM management to continue and perpetuate.
Furthermore, unfortunately for the shareholders of CMKM, it has been business as usual for the SEC and the SEC Attorneys as evidenced by the failure of the SEC and SEC Attorneys to provide complete and accurate evidence to the governmental enforcement agencies that are prosecuting the members of the previous CMKM management for the fraud.
Business as usual for the SEC and the SEC Attorneys causes them to breach their mandated duties, which are to oversee the securities markets, enforce the federal securities laws, and protect investors. Furthermore, business as usual for the SEC and the SEC Attorneys causes the Superseding Indictments against the alleged fraudsters — Superseding Indictment and Second Superseding Indictment 2-09-CR-00132-RLH-RJJ United States of America vs. John M. Edwards et al, 3-24-10, United States District Court, District of Nevada — to be rife with contradictions, inconsistencies, and discrepancies, all of which ultimately render them incomplete, inaccurate, and inadequate.
On 8-18-11, CMKM Information, the author of this article, creates a Petition Letter on change.org in which he exposes the business as usual of the SEC and the SEC Attorneys.
Moreover, CMKM Information demands in the Petition Letter that the SEC and the SEC Attorneys provide the Federal Bureau of Investigation, Las Vegas Office, the United States Department of Justice, District of Nevada, and the Grand Jury in the said Superseding Indictments with the following names and entities to subpoena and source documents to examine to give those governmental enforcement entities the opportunity to rectify the contradictions and discrepancies that exist in the Superseding Indictments:
1. The 1-24-06 SEC Deposition of former CMKM Attorney Donald Stoecklein in which he testifies under oath that CMKM was illegally naked shorted, pages 119-124;
2. The 1-06-06 SEC Deposition of current CMKM Attorney Bill Frizzell in which he testifies under oath that CMKM was illegally naked shorted, pages 123, 149-151, 155, 164, and 167;
3. Jim DeCosta, the naked short expert from Oregon with 25 years experience, for his expert evaluation of the naked short position that exists in CMKM’s stock, pages 122-123, 138-139;
4. Broadridge, a spin-off of Automatic Data Processing in 2007, for CMKM’s NOBO list, pages 120 and 202.
5. The source documents that show the approximately 362 billion purportedly registered/unrestricted CMKM shares that the SEC and the SEC Attorneys fail to account for in Civil Action No. 08-CV-0437 Securities and Exchange Commission vs. CMKM Diamonds, Inc. et al, Complaint, 4-7-08, United States District Court, District of Nevada;
6. The source documents that show the twenty-fold increase in the average trading volume in CMKM stock from 8-03 to 4-05;
7. The findings of the investigation of the SEC and the SEC Attorneys regarding the involvement of Silver State Bank in the pump and dump fraud of the previous CMKM management:
8. The Regional Triaxial Aeromagnetic Survey Assessment Work Report (Drilling Report) on the Fort a la Corne Diamond Project in Saskatchewan, Canada, that substantiates CMKM’s valuable mineral claims in Saskatchewan, Canada;
9. N. Ralph Newson, M.Sc., P. Eng., P.Geo., for his expert evaluation in the Drilling Report of CMKM’s valuable mineral claims in Saskatchewan, Canada.
10. William Jarvis, for his work in preparing the Drilling Report.
11. The 07-19-06 SEC Deposition , pages 10, 154-155, and 187-191, and the 10-23-07 SEC Deposition, pages 6, 17-19, 40, 82-85, 86, 88, 100, 174-176, of former CMKM Attorney D. Roger Glenn in both of which the SEC Attorneys catch him lying repeatedly under oath.
On 8-30-11, SEC Attorney Rinell Randolph (Randolph ) emailed the following generic letter to just one signer of the Petition Letter:
To Whom It May Concern:
Thank you for contacting the U.S. Securities and Exchange Commission. We appreciate your informing us of your concerns regarding CMKM Diamonds. Please note that on January 8, 2010, an action was filed by certain shareholders in CMKM Diamonds against current and former members of the U.S. Securities and Exchange Commission in United States Court Central District of California (8:CV-10-31). As a result of this litigation, the SEC staff cannot comment on statements made by individual investors about the SEC’s actions with respect to CMKM Diamonds other than to direct them to our web page click here. This web page provides information concerning the administrative proceeding and the civil injunctive action brought by the Commission. Investors interested in monitoring the case filed in the Central District of California, including any response filed by the SEC, may visit PACER, an electronic document retrieval system for federal court filings, at http://www.pacer.gov/.
Sincerely,
Rinell Randolph
Attorney
Office of Investor Education and Advocacy
U.S. Securities and Exchange Commission
(800) 732-0330
Blue Monday, New Order
5 Dec 2011
“Blue Monday” New Order
How does it feel
To treat me like you do
When you’ve laid your hands upon me
And told me who you are
I thought I was mistaken
I thought I heard your words
Tell me how do I feel
Tell me now how do I feel
Those who came before me
Lived through their revocations
From the past until completion
They will turn away no more
And I still find it so hard
To say what I need to say
But I’m quite sure that you’ll tell me
Just how I should feel today
I see a ship in the harbor
I can and shall obey
But if it wasn’t for your misfortunes
I’d be a heavenly person today
And I thought I was mistaken
And I thought I heard you speak
Tell me how do I feel
Tell me now how should I feel
Now I stand here waiting
I thought I told you to leave me
While I walked down to the beach
Tell me how does it feel
When your heart grows cold
(grows cold, grows cold, grows cold)
5 December 2011
Classic
Black Friday
kings with no kingdoms..hmm
CMKX Shareholders vs. SEC